Fairfax Financial Holdings has announced a deal to acquire 80% of a leading Indonesian insurer for US$165 million.
The deal will see Fairfax Asia agree a deal with the Panin Group for an 80% stake in Asuransi Multi Artha Guna Tbk (AMAG), a leading Indonesian insurer.
Fairfax did not disclose the value of the deal but
Reuters reports that it is set to be worth around US$165 million.
Prem Watsa, chairman and CEO of Fairfax, said that the international business, based in Canada, is pleased with the deal which expands its global footprint.
"We are pleased to have AMAG join the Fairfax group, and we look forward to working with the Panin Group and Panin Bankas our new partners in Indonesia," Watsa said.
"AMAG has an excellent long-term track record in the Indonesian general insurance sector, a well-diversified sales channel with Panin Bank and this is a great opportunity for us to continue to expand our operations in the region."
AMAG is an established player in the Indonesian market, with more than US$65 million in GWP in 2016.
The business will integrate with PT Fairfax Insurance Indonesia, upon compeletion of the deal, and become part of Fairfax Asia under local CEO, Ramaswamy Athappan.
The deal will also see AMAG enter into a long-term general insurance bancassurance partnership with PT Bank Pan Indonesia Tbk, Fairfax revealed in a statement.
Athappan noted that the Indonesia market remains an important part of the Fairfax business as the company looks to strengthen its presence in the country with the deal.
"Indonesia is an important emerging economy in the region, and we are delighted to strengthen our presence in this market at this opportune time by partnering with Panin Bank and welcoming AMAG into the Fairfax group," Athappan said.
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