IAG to sell Thai, Indonesian units for $525m

Company News

by Rachael Jones

Insurance Australia Group (ASX:IAG) has entered into a sale agreement with Tokio Marine & Nichido Fire Insurance Co for IAG’s operations in Thailand and Indonesia.

They will buy IAG's 98.6 per cent stake in Thailand's Safety Insurance and 80 per cent of PT Asuransi Parolamas in Indonesia.

The sale price is approximately $525 million.

Tokio Marine is the largest property and casualty insurance group in Japan, with operations in 38 countries.

An after-tax profit of at least $200 million is expected to be identified in IAG’s FY19 results from the combined transactions.

Shares in Insurance Australia Group (ASX:IAG) closed 1.86 per cent higher to $8.22 yesterday.