The parties have also agreed that BRI Life will enter into a 15-year life insurance distribution agreement with Bank Rakyat Indonesia
Bank Rakyat Indonesia to sell a minority stake in BRI Life to FWD Group. (Credit: Lofor/Wikimedia Commons)
Pan-Asian life insurer FWD Group has agreed to acquire a minority stake in Asuransi BRI Life, the life insurance business of Bank Rakyat Indonesia (Persero) (BRI), for an undisclosed price.
In this connection, the parties have entered into a conditional share subscription agreement. Apart from that, the parties have agreed that BRI Life will enter into a 15-year life insurance distribution agreement with Bank Rakyat Indonesia.
The deal is subject to regulatory approvals from the Indonesian Financial Services Authority and the fulfillment of certain preceding conditions.
FWD Group said that existing BRI Life’s customer policies will not be impacted by its investment and customers will continue to get their protection, benefits, and services according to the terms of their policies.
After the closing of its investment, the Pan-Asian life insurer intends to closely work with Bank Rakyat Indonesia as part of their strategic partnership and contribute to the management and transformation of BRI Life into one of the top life insurance companies in Indonesia.
FWD Group said that its partnership with one of the largest banks in Indonesia will be transformational for its footprint in the country. Furthermore, it is expected to enable it to work closely with BRI Life to offer unique customer experience and product propositions to a larger number of customers in Indonesia.
FWD Group CEO comments on acquiring a stake in BRI Life
FWD Group CEO Huynh Thanh Phong said: “Indonesia is a country that offers great economic potential and one of our key markets in the region where we intend to increase our investment over the long term. We’re excited to work closely with both BRI and BRI Life to extend FWD’s insurance expertise and digital capabilities to more customers in Indonesia.
“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.”
FWD Group forayed into the Indonesian market via its joint-venture insurance company FWD Life Indonesia, which was established in 2015.
Earlier this month, FWD Life Indonesia acquired the Indonesian life insurance business of Commonwealth Bank of Australia, which it has rebranded as FWD Insurance Indonesia. Following the acquisition, FWD Insurance entered into a 15-year life insurance distribution partnership with Bank Commonwealth (PTBC), which is the Indonesian banking business of Commonwealth Bank of Australia.