- The company is paying 92 million euros for 31 percent of the company, which is on top of the 20 percent it has controlled since 2013.
- The transaction facilitates Mapfre in increasing its presence in Southeast Asia and positioning itself in a market with high potential.
Mapfre will effectively take control of the Indonesian insurance company PT Asuransi Bina Dana Arta Tbk “ABDA”, after signing an agreement that will allow increasing its stake in the company from 20 percent to 51 percent, in a transaction valued at 92 million euros. The completion of the deal is subject to obtaining the relevant administrative authorizations.
Through this acquisition, Mapfre will complete its entry into the Indonesian insurance market, which began in October 2013, when it bought 20 percent of ABDA. It also signed a collaboration agreement with the company through which Mapfre has been inducted into the Indonesian market over this time via businesses such as Mapfre ASISTENCIA.
Under the provisions of Indonesian legislation, once the acquisition has been formalized, Mapfre must make a public takeover bid for the remaining shares in the company.
In 2015 ABDA was ranked fifth in the country’s automobile insurance market, with a market share of 6.4 percent, generating premium volume and net earnings of 93 and 18 million euros respectively in the same year.
ABDA, which was founded in 1982 and is headquartered in Jakarta, is listed on the Indonesian securities market. It operates across the Automobile, Home, Transport, Health and Accident lines and has 36 offices and 578 employees in Indonesia.
Indonesia, with a population of 250 million people, is the fourth most populous country in the world, and the market for automobile insurance shows significant growth potential, based on strong vehicle sales in recent years, driven by increased consumer wealth and the changing regulatory environment.
Mapfre is a global insurance company with a presence across all five continents. The benchmark insurer in the Spanish insurance market, it is also the leading multinational insurance group in Latin America and one of the top 10 insurance groups in Europe in terms of premium volume. Mapfre employs more than 38,000 professionals and services approximately 34 million clients worldwide. In 2015 its revenues exceeded 26.7 billion euros and net profit amounted to 709 million euros.
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