Great Eastern Holdings yesterday announced that its wholly-owned subsidiary, Great Eastern General Insurance, has on 10 December 2018 entered into a sale and purchase agreement to acquire 100% of the shares in QBE General Insurance Indonesia from QBE Asia Pacific Holdings and QBE Insurance (International).
The consideration for the acquistion is $28m, payable wholly in cash. The deal is expected to be completed in the first half year 2019, subject to regulatory approval from Otoritas Jasa Keuangan and the Monetary Authority of Singapore.
QBE Indonesia has a rich history in the Indonesian general insurance market dating back more than 100 years, providing comprehensive insurance solutions to businesses, professionals and families.
Mr Khor Hock Seng, group CEO of Great Eastern Holdings, said, “The acquisition of QBE Indonesia is part of our broader business strategy to further build our general insurance operations into a significant business pillar for the Great Eastern Group and to deepen our footprint in Indonesia. QBE Indonesia is a strategic fit, providing us with the exciting opportunity to complement our existing life insurance presence in Indonesia.
“With this, we will be well-positioned to provide a comprehensive suite of both general and life insurance solutions to a country which has a fast growing economy and the largest population in South East Asia with over 260m. Coupled with the fact that Indonesia’s non-life insurance penetration rate is among the lowest in the region, the market potential for us is tremendous. Additionally, the Great Eastern Group, being part of the OCBC Group, will be leveraging this strong Group synergy to create opportunities to better serve the community.”