FWD Group has agreed to purchase a significant minority stake in PT Asuransi BRI Life, the life insurance subsidiary of PT Bank Rakyat Indonesia (Persero) Tbk.
The transaction is yet to receive approval from regulators and other related stakeholders.
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This partnership is deemed to bolster BRI’s value proposition from its customers’ perspective. BRI Life will also leverage the expertise of FWD in bancassurance for product development, distribution, underwriting, risk management and digital operations and technologies.
Following the transaction, both companies will work together with the goal of establishing BRI Life into a leading life insurance company in Indonesia.
Meanwhile, FWD expects to make its presence known in the Indonesian market through the partnership.
FWD recently acquired Commonwealth Life, the Indonesian life insurance arm of Commonwealth Bank of Australia (CBA).
FWD Group CEO Huynh Thanh Phong has been quoted Insurance Business as saying: “Indonesia is a country that offers great economic potential and is one of our key markets in the region where we intend to increase our investment over the long term.
“This investment will add significant size and scale to our presence in Indonesia, reflecting the substantial opportunity FWD sees to change the way people feel about insurance in a highly underpenetrated, rapidly growing market.”
