Canada’s Fairfax Financial Holdings has completed the acquisition of 80 per cent stakes of PT Asuransi Multi Artha Guna Tbk (AMAG). The shares crossing, worth Rp 2.19 trillion ($168 million), occured Monday, October 10. Fairfax bought the stakes from PT Paninvest Tbk, PT Panin Financial Tbk, Dana Pensiun Karyawan Panin Bank, and PT Bank Pan Indonesia Tbk. The Toronto-based company had said it would integrate AMAG with its Indonesian subsidiary, and that AMAG would enter a long-term general insurance partnership with Bank Pan Indonesia.
Fairfax Financial is a financial holding company which is engaged in property, casualty, and life insurance and reinsurance, investment management, and insurance claims management. “With our global experience, product knowledge, technology, infrastructure, and commitment for Indonesia, we believe that AMAG will become the chosen insurance company in Indonesia, with world-class focused services,” said Ramaswamy Athappan, CEO of Fairfax Asia in a statement.
In the EGM held last Thursday, AMAG officially appointed Athappan as president commissioner, along with vice president commissioner Mu’Min Ali Gunawan and independent commissioners Tri Hananto Sapto Anggoro and Lukman Abdullah. AMAG was established in 1980 as a general insurance company with strong network of branches across Indonesia.
In 2015, the company booked $65 billion of gross premium income, a strong performance in the retail insurance market. Fairfax’s deal with the Panin Group, controlled by Indonesia’s Gunawan family, highlights foreign interest in the Southeast Asian country’s general insurance market after a number of deals in recent years in the life insurance segment.
Japan’s Sumitomo Life Insurance Co bought 40 percent of the life insurance arquired 40 percent of Panin Life.
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