JAKARTA (TheInsiderStories) - Singapore’ FWD Financial Services Pte. Ltd., officially hold 29.86 percent shares of PT Asuransi BRI Life, the management of PT Bank Rakyat Indonesia Tbk (IDX: BBRI), announced on Tuesday (03/02). After completed, the parent still hold 63.83 percent of the insurance firm shares and BRI Employee Welfare Foundation owned 6.31 percent.
The unit of Hong Kong-based, FWD Group, has signed a conditional agreement to purchase a significant minority stake in BRI Life from the state run bank since last year. The transaction followed the acquistion other insurance firm, PT Commonwealth Life, Thai general insurer Siam City Insurance and Vietcombank-Cardif Life Insurance.
FWD Group and BRI Life will sign a 15-year life insurances distribution agreement with the largest assets in the country after the agreement. In this year, the financial firm targeting the premium sales of Rp5.57 trillion (US$389.51 million), fee base income Rp520.7 billion, and advanced premium Rp1.47 trillion.
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.
At the same year, 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.
Last 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 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.
US$1: Rp14,300
Written by Editorial Staff, Email: theinsiderstories@gmail.com
