The motor and home insurer, Insurance Australia Group (IAG) will be purchasing a 20% stake in a Chinese Bohai Property Insurance for $107m to meet its goal of earning 10% of gross written premium from Asia by 2016.i
Reuters has quoted the IAG CEO Mike Wilkins as saying that the company’s prime focus of growth in Asia will be concentrated in India and China though preparations to venture into Indonesian and Vietnam Markets has begun.
"Once the partnership (China) is complete, IAG will have a foothold in the two fastest growing economies in Asia and most populous countries in the world – China and India," Wilkins added.
The deal is expected to be completed in early 2012 and is subject to regulatory approval.
IAG said that the Tianjin-based Bohai, established in 2005, generates an annual gross written premium of over A$200m. It is on track to turn operational profit in financial year 2014.
IAG owned 26% of an Indian joint venture with State Bank of India, and expects to generate A$1bn in gross written premium in the next five years. It also has business in Thailand and Malaysia.
Reuters has reported that the IAG’s A$8 billion gross written premium includes contributions from Asian operations worth A$430m.