Fairfax Asia has agreed to acquire 80% stake in Indonesian insurer PT Asuransi Multi Artha Guna Tbk (AMAG) from PT Paninvest Tbk and its affiliates.
Subject to customary closing conditions, the deal is expected to complete by the end of the fourth quarter this year.
AMAG provides general insurance products for its customers in Indonesia. The company generated about $65m gross written premiums in the last year.
As part of the deal, AMAG will also sign a long-term general insurance bancassurance agreement with PT Bank Pan Indonesia Tbk.
Once the deal concludes, AMAG will be included in the PT Fairfax Insurance Indonesia and operates under the leadership of Fairfax Asia group CEO Ramaswamy Athappan.
Athappan said: "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."
Fairfax chairman and CEO Prem Watsa said: "We are pleased to have AMAG join the Fairfax group, and we look forward to working with the Panin Group and Panin Bank as our new partners in Indonesia.
Last year, Fairfax acquired Lloyd’s of London specialty insurer and reinsurer Brit for around $1.88bn.
Through its subsidiaries, Fairfax provides property and casualty insurance, reinsurance and investment management services.
Image: Fairfax Asia to acquire 80% stake in Indonesian insurer PT Asuransi Multi Artha Guna Tbk. Photo: courtesy of stockimages / FreeDigitalPhotos.net.