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eneral insurer Fairfax Asia Limited, part of Canada-based Fairfax Financial Holdings Limited, launched its Indonesian subsidiary PT Fairfax Insurance Indonesia, a new joint-venture general insurance company, in Jakarta on Friday.

The launch follows the Financial Services Authority (OJK)'€™s approval for the acquisition of 80 percent shares in general insurance firm PT Batavia Mitratama Insurance by Singapore-based Fairfax Asia Ltd. on June 1 this year.

Batavia Mitratama Insurance was founded by business tycoon Ang Andi Bintoro, chairman of Olympindo Group, which is a financial services company engaged in consumer financing.

Fairfax Insurance Indonesia director Ivan Sanjaya said the new majority shareholder, Fairfax Asia Limited, had injected paid-up capital of Rp 250 billion (US$20.4 million) in June this year as its commitment to support the company'€™s goals.

'€œSince July 1, the partnership between Fairfax and Olympindo has begun and we have already gained support from the market and insurance brokers,'€ he said at a press conference.

Bintoro said that Olympindo was chosen as Fairfax'€™s partner because of its 31-year experience in automotive financing, with 50 branches throughout Indonesia, as well as its many working partners and a captive market.

Meanwhile, Fairfax Asia Ltd. chairman R. Athappan said his company chose Olympindo after finding '€œa matched chemistry'€. Olympindo was also considered one of the few financing firms in Indonesia able to repay its debts without haircuts during the 1998 Asian financial crisis.

'€œIndonesia is one of the fastest growing economies and the fourth most-populated country, so it represents a great opportunity for us to grow our business in the region,'€ he said.

Fairfax Financial Holdings, founded in 1985 by its present chairman and CEO Prem Watsa, is listed on the Toronto Stock Exchange in Canada. As of 2013, the Fairfax Group holds equity worth $7.2 billion, with assets of $36 billion and net written premium of $6 billion.

Fairfax Asia forms an integral part of the Fairfax Group, operating across Singapore, Hong Kong, China, India, Thailand, Malaysia and Indonesia. With over $2.6 billion consolidated gross premium in 2013, Fairfax Asia is one of the largest non-life insurance players in Asia.

Fairfax Insurance Indonesia CEO Arun Nanwani said the company aimed to book Rp 125 billion in gross premium this year and Rp 207 billion next year. The company had booked Rp 106 billion in gross premium between January and today, which was a carry over from the old firm, he said.

Nanwani said the company planned to increase its other portions of business from the current 80 percent contribution from automotive insurance. The remaining 20 percent was contributed by small and medium enterprise (SME) products, marine cargo, personal accident and health insurance.

'€œWe will also develop a critical illness product in our health insurance,'€ he said.

Fairfax Insurance Indonesia also planned to establish 10 new branches in large cities, which would add to its current 50 Olympindo and the old Batavia Mitratama Insurance branches, Ivan said.

Fairfax Insurance Indonesia finance director Silviana Bintoro said the company had an investment budget of Rp 30 billion for next year'€™s capital expenditure and operations. The firm was currently partnering several banks to support its product distribution, she said.

'€œWe have filed 30 proposals with 30 banks and we hope we can partner with at least 10 banks next year,'€ she said.