Panin Group Agrees to Sale of 80% Stake in AMAG to Fairfax Asia Together with a Bancassurance Partnership

Press Release

27 June 2016 – PT Paninvest Tbk (“Paninvest”), with its affiliates (together the “Panin Group”), announced today that it has entered into a share purchase agreement with Fairfax Asia Limited (“Fairfax Asia”), a subsidiary of Fairfax Financial Holdings Limited, a Canadian holding company, for the sale of an 80% stake in PT Asuransi Multi Artha Guna Tbk (“AMAG”), its general insurance business in Indonesia, for a total consideration of approximately Rp2,160 billion.

Under the terms of the transaction, Fairfax Asia will acquire an 80% stake in AMAG from Panin Group, concurrently with AMAG entering into a long-term general insurance bancassurance partnership with PT Bank Pan Indonesia Tbk (“Panin Bank”), the 7^th largest bank by total assets in Indonesia. As part of the transaction, Fairfax Asia intends to integrate its existing 80% owned subsidiary, PT Fairfax Insurance Indonesia, with AMAG to ensure that it complies with the single presence policy requirements for insurance companies in Indonesia.

The transaction represents an opportunity for Panin Bank to partner with Fairfax Asia and further grow its bancassurance and distribution capabilities. Commenting on the transaction, Panin Bank’s President Director Herwidayatmo said, “The bancassurance partnership with Fairfax Asia will provide Panin Bank’s customers with access to a range of best-in-class general insurance products from Fairfax Asia and enable Panin Bank to derive another significant source of income stream.”

The transaction is subject to customary closing conditions, including the approval of the Financial Services Authority (Otoritas Jasa Keuangan).

Barclays acted as exclusive financial adviser to Panin Group.

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About AMAG

Established in 1980 and listed on the Indonesian Stock Exchange in 2005, AMAG is a general insurance company providing motor vehicle, health and personal accident, as well as property and fire insurance products and services. It is one of the top 20 general insurers in Indonesia, with a presence in 26 provinces and more than 35 cities across Indonesia.

About Paninvest

Established in 1973 and listed on the Indonesian Stock Exchange in 1983, Paninvest is an Indonesian holding company with interests in the financial services namely banking, insurance and securities.

About Panin Bank

Panin Bank was founded in 1971 through a merger of three domestic banks and was the first Indonesian bank to list on the Indonesian Stock Exchange in 1982. It offers a full suite of banking products and services and is the 7th largest bank in Indonesia by total assets as of March 31, 2016 with a network of 560 branches across the country.