Panin Group agrees to sale 80% AMAG share to Fairfax Asia

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Photo Fairfax

JAKARTA (TheInsiderStories) – PT Paninvest Tbk (IDX: PNIN), with its affiliates  under Panin Group, announced that it has entered into a share purchase agreement with Fairfax Asia Limited, a subsidiary of Canadian Fairfax Financial Holdings Limited, to acquire 80 percent stake in PT Asuransi Multi Artha Guna Tbk (IDX: AMAG). Barclays acted as exclusive financial adviser to Panin Group.

As part of this transaction, AMAG will also enter into a long-term general insurance bancassurance partnership with PT Bank Pan Indonesia Tbk (IDX: PNBN). The transaction is subject to customary closing conditions, including various regulatory approvals, and is expected to close by the end of the fourth quarter of 2016.

 

AMAG is an established general insurer in Indonesia with over Rp2,16 trillion (US$164.25 million) in gross written premiums in 2015. On closing, AMAG will integrate with PT Fairfax Insurance Indonesia and become part of the Fairfax Asia group under the leadership of its CEO, Ramaswamy Athappan.

“Indonesia is an important emerging economy in the region, and we are delighted to strengthen our presence in this market at this opportune time by partnering with Panin Bank and welcoming AMAG into the Fairfax group,” said Ramaswamy in a press statement.

The transaction represents an opportunity for Panin Bank to partner with Fairfax Asia and further grow its bancassurance and distribution capabilities.

Commenting on the transaction, Panin Bank’s President Director Herwidayatmo said, “The bancassurance partnership with Fairfax Asia will provide Panin Bank’s customers with access to a range of best-in-class general insurance products from Fairfax Asia and enable Panin Bank to derive another significant source of income stream.”

Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.

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Source: The Insiderstories
Panin Group agrees to sale 80% AMAG share to Fairfax Asia

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