Spain-based insurance firm Mapfre has purchased a 20% percent stake in Indonesia’s Asuransi Bina Dana Arta ( ABDA), for an undisclosed sum.
Besides acquiring the minority stake in ABDA, Mapfre has formed a partnership to provide the necessary experience to develop ABDA’s industrial insurance operations in Indonesia.
"The penetration of non-life insurance, which represents 0.6 percent of Indonesia’s GDP, is less than in the majority of Asian markets, which reflects its growth potential," Mapfre said in a statement.
In 2012, ABDA was the country’s 10th-largest "non-life" insurer with a premium volume of €74.36m ($100m) and a net profit of €9.29m ($12.5m).
Established in 1982 and based in Jakarta, ABDA underwrites automobile, homeowners, transportation, health and accident policies and manages 33 offices and 500 employees in Indonesia.
Mapfre’s market is focused mainly in Spain, Europe and Latin America. Furthermore, the Group has presence in USA and Turkey, among other countries and has a workforce of 35,586 employees, globally.