JAKARTA (TheInsiderStories) - Hanwha Life, South Korea’s second largest life insurer, is set to pump KRW150 billion (US$134 million) into its arm PT Hanwha Life Insurance Indonesia in a bid to expand its foothold in the country.
The company acquired 80 percent stake of PT Multicorlife Insurance in Indonesia for $13m, in December 2012 which is expected to grow at a rate of 10% until 2020. The acquisition of Multicorlife Insurance, which provides a range of life insurance policies and services, was to secure a local business license, as Indonesian authorities do not allow new business for foreign companies.
Hanwha Life said it will buy Indonesia’s long-term government bonds - with an expected yield return of over 7 percent - as part of its strategy to increase bond portfolio’s returns and break even as soon as possible.
Hanwha Life Insurance Indonesia director and chief agency officer Hendra Thanwijaya saying that the company had targeted to control 1.5% of Indonesia’s insurance market to become one of the country’s top ten insurance companies in ten years time. (*)