Warburg Pincus buys control of Indonesian insurer
Warburg Pincus has acquired stakes in two Indonesian insurance businesses from Spain-headquartered multinational insurance company Mapfre for EUR 56.6m (USD 62.9m).
The transaction – comprising 62.33% of ABDA and 51% of ABDA Assistance – marks Mapfre’s exit from the Indonesian insurance market, the company said in a statement. No information was given as to which Warburg Pincus funds are participating. The firm has a global flagship fund and partner vehicles focused on China and Southeast Asia and global financial services, respectively.
Mapfre acquired a 20% stake in ABDA in 2013. At the time, the company was Indonesia’s 10th largest non-life insurer with premiums of EUR 74.4m and net income of EUR 9.29m It had 33 branches nationwide and offered motor vehicle, property, marine cargo, and accident and health coverage.
The deal included a collaboration agreement that saw Mapfra Asistencia, a provider of insurance and reinsurance services that address speciality risks, enter the Indonesian market. This led to the formation of what was known as Mapfre ABDA Assistance.
In 2016, Mapfre paid EUR 90m to increase its holding in ABDA to 51%, taking effective control of the company. This triggered a tender offer for the remaining shares in Jakarta-listed ABDA, which enabled Mapfre to upsize its position to 62.33%. By 2015, ABDA ranked fifth in Indonesia’s automotive insurance market, with EUR 93m in premiums and EUR 18m in net income.
ABDA’s gross premiums reached IDR 572.8bn (USD 39.8m, EUR 35.5m) in 2020, down from IDR 772.2bn the previous year. Premiums are roughly half the 2017 total. Net income came to IDR 138.2bn, up from IDR 87.5bn, although well short of the IDR 160.8bn posted in 2017.
Mapfre’s total investment in ADBA was EUR 152.6m and the business was responsible for an impairment charge of EUR 102m in 2019 and 2020.
ABDA’s stock last closed at IDR 6,600 on March 3, up 21% year-to-date, though average trading volumes are relatively weak. The company’s market capitalisation was approximately IDR 4.1trn.
More on Southeast Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.