JAKARTA (TheInsiderStories) – After acquired PT Commonwealth Life, Thai general insurer Siam City Insurance and Vietcombank-Cardif Life Insurance, Hong Kong-based FWD Group now bought PT Asuransi BRI Life shares. The local insurance firm owned by state-owned lender, PT Bank Rakyat Indonesia Tbk (IDX: BBRI).
The company said today (06/19), the group has signed a conditional agreement to purchase a significant minority stake in BRI Life from the state run bank. The moves would diversify the company’ Southeast Asia portfolio, and add to its regional businesses.
It said, FWD Group it would work with the bank as part of a strategic partnership and contribute to the management and transformation of BRI Life into a leading life insurance company in Indonesia. BRI Life will sign a 15-year life insurances distribution agreement with the largest assets in the country after the agreement.
In 2016, Bank Rakyat Indonesia attempted to sell a 40 percent stake in its life business unit, but eventually scrapped its plans and opted to utilize resources to boost its value. The second attempt came in June 2018 and get interest from FWD Group, BNP Paribas and South Korea’ Hanhwa Life.
In 2016, Bank Rakyat Indonesia through its pension fund has acquired 100 percent of PT Bringin Life and then decided change the company names as BRI Life. At that time, the insurance firm was in demand by FWD Group and Hanwha Life.
This year, the lender prepared funds Rp1.5 trillion to acquire general insurance firm in order to complete the company’ business as a comprehensive financial services provider. Last year, one of the largest bank in the country has acquired 97.61 percent shares of PT BRI Ventura Investama, 68 percent shares of PT Danareksa Sekuritas, and 35 percent PT Danareksa Investment Management shares.
Previously, the bank has acquired 35 percent of PT Bahana Artha Ventura, which is a subsidiary of PT Bahana Pembangunan Usaha Indonesia (BPUI) with worth of Rp71.21 billion. The transaction eroded BPUI’ ownership from 99.45 percent to 64.65 percent and the shares of the BPUI’ Employee Cooperative from 0.55 percent to 0.35 percent.
While, FWD Group just completed the acquisition of Commonwealth Life from Commonwealth Bank of Australia. After the deal, the company rebranded the business to PT FWD Insurance Indonesia. FWD has grown rapidly across Asia, including Indonesia, and is an innovative and dynamic insurer across its key markets.