Warburg Pincus invests US$350m to form South-east Asian digital insurance firm with ex-FWD exec
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Claudia Chong
PRIVATE equity (PE) firm Warburg Pincus is making a US$350 million equity investment to set up a digital general insurance platform in South-east Asia, its largest investment in the region’s insurance sector to date.
The firm has partnered Abhishek Bhatia, the former FWD Singapore’s chief executive officer (CEO) and group chief officer of FWD Group’s new business models arm, to set up Oona Insurance.
Oona has acquired general insurance businesses Asuransi Bina Dana Arta (ABDA) in Indonesia and Mapfre Insular Insurance Corporation in the Philippines, which will be rebranded as Oona. The company plans to grow through a “buy-and-build” strategy.
Oona’s subsidiary Aseana Insurance agreed to acquire controlling stakes in ABDA and Mapfre ABDA Assistance for US$62.9 million, as part of Spanish insurer Mapfre’s exit from the Indonesian market, a March statement by Mapfre said.
The acquisitions in Indonesia and the Philippines give Oona an initial range of products designed for the local market, including motor, property and group health insurance, Warburg Pincus said in a statement on Thursday (Oct 20).
“With consistently rising incomes and accelerating digital adoption, we believe Oona is well positioned to capture the tremendous growth opportunity for digital insurance across South-east Asia,” said Saurabh Agarwal, managing director at Warburg Pincus.
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The US-based firm is one of the largest PE firms in South-east Asia, having invested nearly US$3.5 billion in 17 companies in the region since 2013.
The group manages over US$85 billion in assets. It has invested over US$3 billion of equity capital in over 25 insurance companies globally, over more than 30 years, the statement said.
Oona plans to introduce products in verticals such as travel and health. It has its eye on products emerging on the back of the increasing adoption of e-commerce and digital payments.
“General insurance is a significantly underpenetrated industry in the region and a sector that’s ripe for digital disruption. Legacy systems and mindset among incumbents provide a real opportunity to create a truly customer-focused organisation with a strong tech and brand spine,” said Bhatia, group CEO of Oona.
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