Great Eastern General Insurance Ltd., has entered into a sale and purchase agreement to acquire 100 percent of PT QBE General Insurance Indonesia (12/10) - Photo by the Company

JAKARTA (TheInsiderStories) – Singapore’ Great Eastern Holdings Ltd., through its unit, Great Eastern General Insurance Ltd., has entered into a sale and purchase agreement to acquire 100 percent of local insurer PT QBE General Insurance Indonesia shares.

QBE Indonesia, established in 1906 and is majority owned by the QBE Insurance Group and is part of the Asia Pacific division.Based on the life insurance company, the agreement with QBE Asia Pacific Holdings Limited and QBE Insurance (International) Pty. Ltd has been signed on Dec. 10.

In a written statement, Group CEO of Great Eastern Holdings Khor Hock Seng said the acquisition of QBE Indonesia is part of their business strategy to build general insurance operations and to deepen their footprint in Indonesia.

“QBE Indonesia is a strategic fit, providing us with the exciting opportunity to complement our existing life insurance presence in Indonesia,” he said.

He added, “Coupled with the fact that Indonesia’s non-life insurance penetration rate is among the lowest in the region, the market potential for us is tremendous.”

The transaction is expected to be completed in the first half of the 2019 year, subject to approval from Indonesia’ Financial Service Agency and the Monetary Authority of Singapore.

Life insurance and general insurance businesses have enjoyed significant development in Indonesia. In the third quarter (3Q) of 2018, the general insurance and reinsurance income recorded Rp47.9 trillion (US$3.26 billion) or grew 8.3 percent compared to the figure in the same period in 2017 Rp44.2 trillion.

According to Indonesian General Insurance Association Executive Director Dody Dalimunthe, the growth was in line with the economic growth in 3Q of 2018, which amounted to 5.2 percent also growth in the financial sector and insurance services by 3.16 percent.

Meanwhile, until September 2018, life insurance premium income recorded Rp140.94 trillion, or up by 1.2 percent from 3Q of 2017 of Rp139.27 trillion.

The premium growth was driven by a rise in new business premiums which grew 6.4 percent and continued business premiums which declined 6.8 percent. The premium income mostly came from agencies which contributed 39.7 percent.

US$1: Rp14,500

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