28 November 2019 – PT Bank Danamon Indonesia Tbk (“Bank Danamon”) announced today that it has completed the sale of 70% share ownership in PT Asuransi Adira Dinamika Tbk (“Adira Insurance”), its general insurance subsidiary to Zurich Insurance Company Ltd (“Zurich”).
This is a continuation of the conditional sales and subscription agreement (CSSA) signed on 27 September 2018 between Bank Danamon and Zurich Insurance Company Ltd (Zurich) for the sale of share ownership in Adira Insurance.
Under the terms of the transaction, Zurich completed the acquisition of a total of 80% stake in Adira Insurance from Bank Danamon (70%) and a minority shareholder (10%).
This means that Zurich is now the controlling shareholder of Adira Insurance. With Zurich’s investment, Adira Insurance will be able to access international expertise, best-in-class underwriting, digital and risk management capabilities. Zurich’s global experience and product expertise will provide added value for Adira Insurance’s policyholders.
Bank Danamon will continue to work with Adira Insurance, as it remains a minority shareholder and has also entered into a general insurance partnership to distribute Adira Insurance products through the Danamon Group’s distribution network. The strategic partnership with Zurich will provide Danamon Group’s customers with access to a wide range of best-in-class general insurance products from a globally renowned institution.
Commenting on the transaction and bancassurance partnership, Bank Danamon’s President Director Yasushi Itagaki said, “Adira Insurance has been a valuable part of Danamon group. It is important to recognize the efforts of existing and previous management for growing the business to become one of the largest general insurance companies in Indonesia. We are confident that the investment of Zurich, which is one of the world’s most renowned multi-line insurance providers, will further strengthen Adira Insurance and add value to their policy holders as well as their stakeholders.”
We are confident that between Danamon, Adira Insurance and Zurich, this partnership will allow us to increase customer penetration in our key growth segments (i.e. Consumer, SME, Commercial, and Adira Finance) and bring enhanced fee income opportunities to the Bank. In addition, Danamon will strengthen its capital structure as a result of this transaction. The proceeds from the sale of Adira Insurance will be used to invest in strengthening our proposition including our infrastructure, improvement of service quality as well as potential additional shareholder return.
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