Great Eastern enters deal to buy QBE General Insurance Indonesia

Great Eastern building at Changi in Singapore; taken August 2018.Great Eastern building at Changi in Singapore; taken August 2018.

Great Eastern Holdings said on Tuesday that its wholly owned subsidiary, Great Eastern General Insurance (GEG), entered a deal to acquire all of PT QBE General Insurance Indonesia for US$28.0 million, or around S$38.4 million.

It plans to acquire QBE Indonesia from QBE Asia Pacific Holdings and QBE Insurance (International), it said in a filing to SGX before the market open on Tuesday.

Based on QBE Indonesia’s unaudited financial statements for the six months ended 30 June, its book value and net tangible asset value was 452 billion rupiah, or around S$43.1 million, it said.

The transaction is subject to approval from the Otoritas Jasa Keuangan and the Monetary Authority of Singapore, the filing said.

Once the deal is completed, QBE Indonesia, which has manufacturing and distribution of general insurance products as its main business activities, will become a wholly owned subsidiary of Great Eastern Holdings via GEG, the filing said.

In a separate filing, QBE sai the deal was part of its portfolio simplification agenda, which also included selling operations in Puerto Rico and the Philippines.

Get the Shenton Wire morning briefing in your inbox