Indonesian lender Bank Central Asia (BCA) is weighing options for its PT Asuransi Jiwa BCA life insurance business, reported Reuters, citing sources.
With a market value of $74bn as of 19 June, BCA is working with an adviser to review the business, also known as BCA Life.
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Sources commented that the options under consideration include a sale, the formation of a joint venture with a foreign entity, or a bancassurance alliance.
A BCA representative declined to confirm or deny the news, reported the news agency.
BCA representative Hera Haryn said: “In principle, BCA and its subsidiaries are always open to collaborating with strategic partners to expand our services while supporting business growth.”
Haryn continued that many business players were eager to access Indonesia’s potentially sizable life insurance market.
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By GlobalDataSources cautioned that the talks are at an early stage and a final decision is yet to be made.
As of December 2022, BCA Life had assets worth Rp2.34tn ($155.96m).
If a deal materialises, BCA would be added to the group of Asian lenders and insurers looking for partnerships for their insurance operations.
Among them are the Japanese insurer Tokio Marine, which has hired investment banks to assist in the sale of its South-East Asia life insurance business, and India’s Kotak Mahindra Bank, which is negotiating with Zurich Insurance Group to sell a stake in its general insurance operation.
