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Insurance Council of Australia
Insurance Council of Australia

IAG offloads operations in Thailand, Indonesia

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IAG has agreed to sell its operations in Thailand and Indonesia to Tokio Marine & Nichido Fire Insurance Co for about $525 million, and will also exit Vietnam in a separate deal after earlier this year announcing a review of its Asian businesses.

The Tokio Marine transaction includes a 98.6% stake in Safety Insurance in Thailand and 80% of PT Asuransi Parolamas in Indonesia.

“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,” IAG CEO Peter Harmer said.

IAG has also reached an agreement to sell its 73% interest in Vietnam-based AAA Assurance Corporation.

The transactions are expected to conclude next financial year, subject to approvals, and contribute at least $200 million to after-tax profit.

IAG announced in February that it planned to complete a strategic review of its operations in Thailand, Vietnam, Indonesia, India and Malaysia.

“The sale proceeds from Thailand, Indonesia and Vietnam will be a contributory factor in determining future capital management initiatives,” the company said.

More details in our regular bulletin on Monday.