Warburg Pincus Partners with Abhishek Bhatia to Create Oona, a Digital Insurance Platform in Southeast Asia

 

Warburg Pincus ties up with Oona Insurance.

De-novo platform in partnership with Abhishek Bhatia, a seasoned insurance executive, to build the pre-eminent digital general insurance player in Southeast Asia

Oona is seeded with two recent significant acquisitions in Indonesia and the Philippines which deliver an immediate foothold in the region to build its broader business

Singapore, October 20, 2022 – Warburg Pincus, a leading global growth investor, in partnership with seasoned executive Abhishek Bhatia, today announced a USD350 million equity commitment to establish Oona Insurance[1] (“Oona”), a digital general insurance platform in Southeast Asia. This investment represents the largest funding round in the region to seed a digital insurance platform.

Through a buy-and-build strategy, Oona aims to become the pre-eminent digital general insurance platform in Southeast Asia. The platform is seeded with two significant acquisitions – PT Asuransi Bina Dana Arta Tbk (“ABDA”) in Indonesia and Mapfre Insular Insurance Corporation (“MIIC”) in the Philippines, both of which have a long-standing track record and reputation in their respective markets for providing quality products and superior customer service. These assets bring Oona an initial product portfolio, strong distribution relationships, a robust infrastructure, and an immediate foothold in the region upon which to build its business. The companies will be rebranded as Oona in due course.

Operating in a large and fast-growing sector, Oona plans to deploy a unique value creation strategy to scale up into Southeast Asia’s leading digital general insurance platform with operations across multiple major markets in the region.

With the acquisition of ABDA and MIIC, Oona carries a wide range of products, including motor, property, and group health insurance, which are designed to be fit-for-market and well-suited to meet local customer demands. In addition, Oona plans to introduce new products such as travel, health as well as products that are emerging on the back of increasing adoption of internet, e-commerce, and digital payments.

Oona will invest meaningfully to build a new tech stack with a focus on leveraging market leading technology to significantly enhance customer experience, with the aim to be the number one choice for partners and customers alike based on its customer service, technology, and strong brand.

Abhishek Bhatia, Group CEO of Oona, said, “General insurance is a significantly underpenetrated industry in the region and a sector that’s ripe for digital disruption. Legacy systems and mindset amongst incumbents provide a real opportunity to create a truly customer-focused organization with a strong tech and brand spine. I am very excited to partner with Warburg Pincus to build Oona into a truly world-class company. With the support of Warburg Pincus, Oona will continue to explore opportunities to deepen the depth and breadth of its presence in key markets in Southeast Asia. All the assets and operations will be consolidated under a coherent operating model and a common brand and tech stack, positioning us well to capture the rapidly growing opportunities for digital general insurance in the region.”

Saurabh Agarwal, Managing Director at Warburg Pincus, said, “With consistently rising incomes and accelerating digital adoption, we believe Oona is well positioned to capture the tremendous growth opportunity for digital insurance across Southeast Asia. We are excited about our partnership with Abhishek and Oona’s talented management team and look forward to leveraging our deep expertise in the insurance sector to support Oona’s growth aspirations. With our steadfast commitment, we are confident that Oona will evolve into a truly differentiated platform that will consolidate the market and create the most compelling insurance products to reach the massively underserved market in the region.”

This investment is consistent with Warburg Pincus’ approach of investing capital and resources behind best-in-class entrepreneurs to create de novo platforms to capture the high-growth opportunities in the region. Some of the most prominent examples include ESR, the largest real asset fund manager in Asia; PDG, a leading developer and operator of data centers in Asia Pacific; and Asia Self Storage, the largest self-storage company in Asia. Warburg Pincus is also one of the most active investors in the insurance sector globally. Over the past 30+ years, Warburg Pincus has invested over $3 billion of equity capital in over 25 insurance companies globally that operate across all parts of the insurance value chain.

About Warburg Pincus

Warburg Pincus LLC is a leading global growth investor. The firm has more than $85 billion in assets under management. The firm’s active portfolio of more than 255 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 21 private equity and 2 real estate funds, which have invested more than $107 billion in over 1,000 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore.

Warburg Pincus is one of the most active private equity firms in Southeast Asia. Since 2013, the firm has committed nearly $3.5 billion in 17 companies in the region. For more information, visit www.warburgpincus.com

About Oona Insurance

Oona Insurance is a de novo, pan-Southeast Asia digital general insurance platform created by Warburg Pincus in partnership with Abhishek Bhatia, an insurance veteran with 25 years of experience and a proven track record of scaling insurance businesses. The platform, backed by a $350mm equity commitment by Warburg Pincus, will deploy a unique value creation strategy as it strives to become the region’s pre-eminent digital-first and retail-focused general insurance platform. Oona has acquired two sizeable general insurance businesses in the region – ABDA in Indonesia and MIIC in the Philippines – via its wholly owned subsidiary, Aseana Insurance Investments Holdings Pte. Ltd.

[1] Oona is also known as Aseana insurance.

Warburg Pincus to Invest $350 Million in Oona Insurance to Establish Digital Insurance Platform in Southeast Asia

 

Global private equity firm Warburg Pincus has announced that it will invest US$350 million to establish Oona Insurance, a digital general insurance platform in Southeast Asia.

According to Warburg Pincus, this investment is the largest-ever seed funding round for a digital insurance venture in the region.

Oona will be led by Abhishek Bhatia (pictured above), former CEO of FWD Singapore and head of FWD’s new business models division.

Oona will grow its presence in the region through a buy-and-build strategy, with two acquisitions to kick off its operations – PT Asuransi Bina Dana Arta Tbk (ABDA) in Indonesia and Mapfre Insular Insurance Corporation (MIIC) in the Philippines.

Warburg Pincus said the acquisitions will give Oona an initial product portfolio and existing distribution relationships and infrastructure. Both companies will be rebranded as Oona in due course. With ABDA and MIIC under its wing, Oona’s product offering includes motor, property, and group health insurance, aiming to meet local customer demands.

Bhatia said that Southeast Asia’s general insurance market is significantly underpenetrated and “ripe” for digital disruption by a customer-focused organisation with strong technology capabilities.

“I am very excited to partner with Warburg Pincus to build Oona into a truly world-class company,” Bhatia said. “With the support of Warburg Pincus, Oona will continue to explore opportunities to deepen the depth and breadth of its presence in key markets in Southeast Asia. All the assets and operations will be consolidated under a coherent operating model and a common brand and tech stack, positioning us well to capture the rapidly growing opportunities for digital general insurance in the region.”

“With consistently rising incomes and accelerating digital adoption, we believe Oona is well positioned to capture the tremendous growth opportunity for digital insurance across Southeast Asia,” said Saurabh Agarwal, managing director of Warburg Pincus. “We are excited about our partnership with Abhishek and Oona’s talented management team and look forward to leveraging our deep expertise in the insurance sector to support Oona’s growth aspirations.”

Warburg Pincus, a New York-based private equity firm, is making its largest deal yet in Southeast Asia’s insurance sector by investing US$350 million in the establishment of digital Insurtech platform Oona Insurance. The investment is expected to help Oona expand its product offerings, which currently include motor, property, and group health insurance in Indonesia and the Philippines. Oona plans to rebrand Asuransi Bina Dana Arta and Mapfre Insular Insurance Corporation under its name and add other general insurance products such as travel and health insurance.

The establishment of Oona Insurance is a collaboration between Warburg Pincus and Abhishek Bhatia, former group CEO of insurance multinational firm FWD Group. Warburg Pincus has been one of the largest private equity firms in Southeast Asia, having invested in 17 companies with a total value of US$3.5 billion. The firm’s assets under management currently stand at over US$85 billion.

According to Saurabh Agarwal, Managing Director at Warburg Pincus, Oona is well-positioned to capture growth in the Southeast Asian market due to the region’s increasing digital adoption and consistently rising incomes. With the help of Warburg Pincus’ investment, Oona is expected to expand its market reach and better serve the insurance needs of individuals and businesses in the region.

The Southeast Asian insurance market has been experiencing steady growth, driven by increasing demand for insurance products and services, rising awareness of the importance of insurance, and the region’s overall economic growth. With the COVID-19 pandemic highlighting the need for comprehensive health and travel insurance, Oona’s planned expansion of its product offerings is expected to capitalize on this trend.

Oona Insurance aims to leverage technology to simplify the insurance process, improve customer experience, and enhance transparency. The platform will offer digital claims processing, policy management, and customer service, enabling customers to access insurance products and services anytime and anywhere. With the expected growth of the Southeast Asian insurance market, Oona is well-positioned to become a key player in the industry.

Aseana Insurance acquires majority stake

 

JAKARTA – Aseana Insurance Pte Ltd concludes the acquisition of 62.33% of shares of Mapre Internacional SA in PT Asuransi Bina Dana Abadi Tbk (ABDA) worth IDR 885.67 billion.

In the information disclosure quoted Friday (2/9), Ratih Kusumadilaga, Corporate Secretary of ABDA, confirmed that Aseana’s portion in the company has risen to 87.18% post transaction. “Prior to the completion of this transaction, Aseana’s ownership only clocked up to 24.85% or 154,273,041 shares of the entire shares issued by the company,” she explained.

After this transaction, Aseana claims another 386,924,893 shares, bringing its portion up to 541,197,934 shares of the total issued shares of ABDA.

Aseana Insurance, a subsidiary of the Singapore-based company Aseana, operates under the ownership of Warburg Pincus LLC and its affiliates. Aseana has an impressive issued and paid-up capital of USD 178.59 million, which comprises 178,592,601 common shares and preferred shares valued at USD 1 per share.

It is known for its comprehensive range of insurance products and services. With a strong capital base, the company is well-positioned to provide reliable coverage and financial security to its clients. Whether it’s life insurance, property insurance, or general insurance, Aseana Insurance offers tailored solutions to meet the diverse needs of individuals and businesses.

As part of the Aseana group, the insurance arm benefits from the extensive expertise and resources available within the larger organization. This enables Aseana Insurance to stay at the forefront of the insurance industry, adapting to evolving market trends and regulations.

With its solid financial foundation and commitment to customer satisfaction, it continues to establish itself as a trusted provider in the insurance sector. By offering innovative products and excellent service, the company aims to build lasting relationships with its policyholders, ensuring their peace of mind and protection against unexpected events.

Aseana Insurance completes mandatory tender offer for majority stake in ABDA

 

PT Asuransi Bina Dana Arta Tbk. (ABDA), a general insurance issuer, announced on 29th November 2022 that Aseana Insurance Pte. Ltd (Aseana) has successfully completed the mandatory tender offer for ABDA shares. The tender offer was conducted from 18th October to 16th November 2022, and the payment for the offer was made on 25th November 2022.

Aseana has purchased a total of 47,115,204 ABDA shares from public shareholders who participated in the mandatory tender offer during the offer period. The Corporate Secretary of ABDA, Ratih Kusumadiga, confirmed that Aseana now owns 94.77 percent of ABDA shares or 588,313,138 shares. The total cost incurred by Aseana for this acquisition was IDR 320.52 billion, with a dowry of IDR 6,803 per share.

This acquisition has significant implications for ABDA’s future operations and strategic direction. With Aseana’s majority ownership, ABDA is likely to undergo significant changes in its management, operations, and strategic objectives. Aseana is a well-established insurance company with a strong presence in the Southeast Asian insurance market. ABDA’s collaboration with Aseana will bring significant benefits in terms of operational efficiencies, technology advancements, and customer satisfaction.

The acquisition of ABDA shares by Aseana also has broader implications for the Indonesian insurance sector. The insurance industry in Indonesia has been growing rapidly in recent years, driven by the country’s economic growth, increasing affluence, and growing awareness about the importance of insurance. With Aseana’s entry into the Indonesian insurance market, there is likely to be increased competition and innovation, which will ultimately benefit customers and the overall industry.

In conclusion, Aseana’s successful acquisition of a majority stake in ABDA is a significant development for both companies and the wider insurance industry in Indonesia. It will be interesting to observe the changes and innovations that will result from this acquisition, and the impact it will have on the Indonesian insurance market in the coming years.

Insular Life and Oona Philippines Holding Corp. form joint venture to take full control of Mapfre Insular Insurance Corp. (MIIC)

 

Insular Life (InLife) has entered into a joint venture agreement with Oona Philippines Holding Corp. to take the full control of Mapfre Insular Insurance Corp. (MIIC).

In statement, Nina Aguas, InLife executive chairperson, said the Filipino-owned life insurance firm increased its stake in MIIC from 25 percent to 40 percent, while Oona will acquire the remaining 60 percent shares in the company.

The deal follows Mapfre Internacional SA of Spain’s earlier decision to exit its business interests in Asia, including the Philippines.

“We attracted a significant investor for our non-life businesses,” Aguas said. “The joint venture will allow for our current and future distribution channels to scale up and provide stronger and better general insurance products delivered using technology.”

Aguas said InLife will leverage on Oona’s capability-building and value-creation capacity to strengthen their reach and allow both to increase relevance and cooperation.

“The complementary strengths of both companies will propel both companies to leadership position in providing relevant and timely solutions to the current and evolving needs of our markets,” Aguas said.

“This will give us more arsenal to pursue our growth trajectory for our non-life businesses as we become stronger players in the digital economy,” he added.

Abhisek Bhatia, Oona group chief executive officer said they are delighted to partner with InLife.

“Together we will build the leading digital general insurer in the country. Our shared values of customer first and digital enablement will drive future growth for the business,” Bhatia said.

Insular Life (InLife) Increases Stake in Mapfre Insular Insurance Corp. as MIIC Goes Digital with New Majority Owner

 

Insular Life (InLife) is raising its stake in Mapfre Insular Insurance Corp. (MIIC) from 25 percent to 40 percent as MIIC transforms into a digital platform for the Southeast Asian market with the entry of a new majority owner.

MIIC is the subject of a $350-million acquisition drive by New York-based private equity firm Warburg Pincus.

The American investor is acquiring MIIC along with PT Asuranci Bina Dana Arta Tbk (ABDA) in Indonesia. Both are to be rebranded as Oona and are intended to be the region’s pre-eminent digital general insurance platform.

InLife said in a statement it had entered into a joint venture agreement with Oona Philippines Holding Corp. while its erstwhile partner in MIIC, Mapfre Internacional SA of Spain (Mapfre) has decided to exit its business interests in Asia, including the Philippines.

Oona will take over with the acquisition of a 60-percent stake in MIIC.

“We attracted a significant investor for our non-life businesses.  InLife’s focused execution, strong and tested brand, and wide network were attractions to Oona,” InLife executive chair Nina Aguas said in a statement.

“The joint venture will allow our current and future distribution channels to scale up and provide stronger and better general insurance products delivered using technology,” Aguas said.

She added that the new partnership would boost InLife’s drive to pursue their growth trajectory for their  non-life businesses.

Aguas said Oona and InLife are now in the process of completing and submitting all the regulatory requirements related to the joint venture. for approval by the Insurance Commission.