Insurance Australia Group said it is looking to enter the Indonesian market, as Australia’s largest home and car insurer seeks to expand its footprint in faster-growing Asian markets.
IAG Chief Executive Mike Wilkins said its interest in Indonesia was still in the early stages, with no specific company being targeted, but said it would be looking to form a joint venture when it does enter the market.
“We’ve made the conscious decision that when we enter into an Asian market we are just going to have one partner,” Wilkins said on Wednesday.
“We have completed a detailed strategic review of the Indonesian market and we believe it represents a very strong opportunity and there is the added appeal of being able to own up to 80 percent.”
Asia is growing in importance for IAG, which aims to achieve 10 percent of group revenue from the region over the next four years from 6 percent currently.
The insurer has operations in India, Thailand, Malaysia and China, while its most recent move was into Vietnam with a 30 percent stake in motor insurer AAA Assurance.
Entering the Indonesia market will round out the six.
IAG shares rose 0.4 percent, slightly outpacing a 0.2 percent rise in the broader market.