Zurich Financial Services Group has said that its subsidiary Zurich Insurance Company has signed an agreement to acquire 80% of PT Mayapada Life, an Indonesian life insurer.

According to Zurich, the Indonesian insurer will be sold by Mayapada Group which will continue to hold 20% stake in PT Mayapada Life. The transaction is expected to close in third quarter of 2010.

Headquartered in Jakarta, PT Mayapada Life has been distributing its life insurance products through tied agents and to a lesser extent through PT Bank Mayapada International (Mayapada Bank).

Zurich Financial is planning to enter into a long-term distribution agreement with Mayapada Bank to ensure immediate access to Indonesian bancassurance distribution channel.

Mario Greco, CEO of global life at Zurich, said: “The acquisition of Mayapada Life is a first step in Zurich Life’s expansion plans in Indonesia. It underpins our commitment to developing the market in Indonesia and our strategy of providing protection and saving products to the rapidly growing number of the population with such needs.”