Spain’s MAPFRE has acquired a 20 percent stake in the Indonesian insurance company Asuransi Bina Dana Arta (ABDA). It has also established a partnership in which MAPFRE becomes the industrial insurance partner that will provide expertise to develop the insurance operations of ABDA in the growing Indonesian insurance market.

In 2012 ABDA was in 10th position in the Indonesian non-life insurance market with premiums reaching €74.36 million [$101.68 million] and net income of €9.29 million [$12.66 million].

ABDA was established in 1982 and is headquartered in Jakarta; it is listed in the Indonesia Stock Exchange. ABDA sells motor vehicle, property, marine cargo and accident and health insurance. The insurer has 33 branches across Indonesia and 500 employees.

Indonesia has a population of 250 million, ranking it fourth in the world. Its economy, rated Investment Grade by Moody’s and Fitch (BBB-), is estimated to grow by nearly six percent per year on average in the next five years. Its non-life Insurance market is estimated to grow by more than seven percent per year up to 2020. Its non-life insurance penetration, 0.6 percent of GDP, is lower than most Asian markets, which highlights its growth potential, according to MAPFRE.