IAG sells Asian businesses to Tokio Marine for A$525m

Insurance Australia Group (IAG) is  selling its Asian businesses in Thailand, Indonesia and Vietnam.

The company has entered into a sale agreement with Tokio Marine & Nichido Fire Insurance, part of property/casualty insurance group Tokio Marine Holdings, for its operations in Thailand and Indonesia. The sale price is said to be around A$525 million ($390 million).

The sale agreement covers IAG's interest in 98.6 percent of Safety Insurance in Thailand, and 80 percent of PT Asuransi Parolamas in Indonesia.

Separately to the deal with Tokio Marine, IAG has reached an agreement to sell its 73.07 percent interest in AAA Assurance Corporation, based in Vietnam.

All the transactions are expected to conclude in the financial year ended 30 June 2019, subject to regulatory approvals.

“We are pleased to accept the offer for our businesses in Thailand and Indonesia from Tokio Marine,” said IAG managing director and CEO Peter Harmer. “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 said an after-tax profit of at least $200 million is expected to be identified in its FY19 results from the combined transactions.

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