New York-based private equity firm Warburg Pincus has earmarked $350 million to set up a digital general insurer in Southeast Asia through the acquisition of Mapfre Insular Insurance Corp. (MIIC) in the Philippines and PT Asuranci Bina Dana Arta Tbk (ABDA) in Indonesia.
The American global growth investor is embarking on what is touted as the largest funding round in the region to build a digital insurance platform by transforming MICC and ABDA into an entity called Oona Insurance.
Warburg intends for Oona to become the preeminent digital general insurance by building on the “long-standing track record and reputation [of MICC and ABDA] in their respective markets for providing quality products and superior customer service.”
The acquisitions are made through Warburg’s Singapore-based wholly owned subsidiary Aseana Insurance Investments Holdings Pte. Ltd.
“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,” Warburg PIncus managing director said in a statement.
“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,” he said.
With the acquisition of ABDA and MIIC, Oona is seen as carrying 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.
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.