Thursday, June 21, 2018

IAG Divesting Insurance Arm

Image result for IAG AustraliaInsurance Australia Group (IAG) has agreed to divest its Thai and Indonesian insurance businesses to Japan-based insurance form Tokio Marine, in a deal worth A$525m ($388m). Under the terms of the agreement, Tokio Marine & Nichido Fire Insurance, a unit of the Japanese company, will buy IAG’s 98.6% in Thailand’s Safety Insurance and 80% of PT Asuransi Parolamas in Indonesia.
IAG managing director and CEO Peter Harmer said: “We are pleased to accept the offer for our businesses in Thailand and Indonesia from Tokio Marine“We believe Tokio Marine is an ideal owner given its experience in the region, and that this is a good outcome for the associated employees, customers and other stakeholders.”
Separately, IAG has signed an agreement to divest its 73.07% interest in AAA Assurance, based in Vietnam. IAG did not reveal more details about the deal.
All transactions are scheduled to complete by end of June 2019, subject to regulatory approvals or notifications. IAG is expected to record an after-tax profit of at least A$200m ($147.7m) in its fiscal 2019 results from the combined transactions, after certain deductions.

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