PT Astra International and Aviva, a UK-based insurer, have reached an agreement to form Astra Aviva Life, a 50-50 joint venture (JV) to sell and distribute life insurance products in Indonesia.
The new JV will operate as the preferred provider of various life insurance products to Astra and its subsidiaries.
Additionally, Astra Aviva Life will enter into distribution arrangements with a number of the Astra group companies, including PermataBank.
The JV will also deliver life insurance to the wider consumer market leveraging an array of digital, agency and partner channels.
Commenting on the formation of the new venture, Astra International president director Prijono Sugiarto said that Astra Aviva Life has the potential to become a leader in Indonesia.
"Leveraging Aviva’s insurance expertise, Astra Aviva Life aims to create significant long-term value for its customers, employees and stakeholders.
"This joint venture is in line with Astra’s strategy to continue to expand and diversify, entering new business areas in which we believe we can create a market-leading business underpinned by our values and management philosophy," Sugiarto added.
Founded in 1957, Astra serves more than 10 million customers per year through businesses in six segments, such as automotive, financial services, heavy equipment & mining, agribusiness, infrastructure & logistics, and information technology.