Insurance Australia Group (IAG) is seeking to expand its foothold in the Indonesian underwriting market with an acquisition of A$100m ($102m) in Indonesia.
IAG’s Asia CEO Justin Breheny said the insurer has decided to partner with a bank assurance operator in Indonesia, as it has done with the State Bank of India and Malaysia’s AmBank Group, but no immediate deals has been announced.
The Australian car and home insurer said that it is eyeing on emerging Asian markets as domestic insurance has reached its saturation level thus leaving little space for growth.
IAG chief Mike Wilkins said, ”The Asian opportunity is here and now. Over the past couple of years, we’ve quietly gone about our Asian strategy and are now getting real traction.”
During a presentation to its shareholders, IAG said that non-life gross written premium in emerging Asia would more than double to $424bn by 2020.
IAG had reported a 9.7% growth in gross written premium to A$4.3bn for the six months to December with more than 80% of that coming from Australia and New Zealand.