The sale agreement with Tokio Marine covers IAG’s interests in:
- 98.6% of Safety Insurance in Thailand; and
- 80% of PT Asuransi Parolamas in Indonesia.
Tokio Marine forms part of Tokio Marine Holdings, Inc., the largest property and casualty insurance group in Japan, with operations in 38 countries.
“We are pleased to accept the offer for our businesses in Thailand and Indonesia from Tokio Marine,” IAG Managing Director and CEO Peter Harmer said. “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.”
Separate to the transactions with Tokio Marine, IAG has reached an agreement to sell its 73.07% interest in AAA Assurance Corporation, based in Vietnam.
All transactions are expected to conclude in the financial year ended 30 June 2019, subject to regulatory approvals or notifications.
An after-tax profit of at least $200 million is expected to be identified in IAG’s FY19 results from the combined transactions, after allowance for related costs and foreign currency translation reserve effects.