Hanwha General Insurance said Monday it has acquired a controlling stake in Lippo General Insurance Tbk, incorporating the Indonesian insurer as a subsidiary to strengthen its overseas business.
In 2023, Hanwha General Insurance and Hanwha Life Insurance jointly acquired the financial subsidiary of Indonesia’s Lippo Group. Through the latest transaction, Hanwha General purchased Hanwha Life Indonesia’s 46.6 percent stake, raising its total ownership to 61.5 percent.
Under the agreement, the company acquired approximately 1.4 billion common shares for 82.3 billion won ($57 million), bringing its total holdings to 1.85 billion shares. The company said the acquisition was aimed at diversifying its revenue portfolio and expanding its global footprint.
Lippo General Insurance is a major insurer in the Indonesian market. The company posted 157.2 billion won in operating revenue in the first half of this year, up 5.5 percent from a year earlier, and received an A- (Excellent) financial strength rating from global credit rating agency A.M. Best in October.
Hanwha plans to leverage its local network to grow Lippo General Insurance, focusing on high-value product lines such as marine and property insurance. It also aims to generate synergies through collaboration with Nobu Bank, a local lender in which Hanwha Life has invested.
“This acquisition is intended to overcome growth limitations in the saturated domestic market and diversify our profit portfolio,” a Hanwha General Insurance official said. “We will apply our digital financial technologies and risk management expertise to ensure stable growth in the global market.”
sunblessyou@heraldcorp.com
