Hong Kong’s FWD Group is acquiring an unspecified minority stake in Indonesian insurer PT Asuransi BRI Life from the Jakarta-based firm’s parent PT Bank Rakyat Indonesia for an undisclosed sum.
The move comes soon after FWD completed acquiring another Indonesian insurer, PT Commonwealth Life, from Commonwealth Bank of Australia for US$300 million earlier this month.
FWD will form a 15-year life insurance distribution partnership with PT Bank Rakyat Indonesia in the latest deal, the Hong Kong company says in a statement on June 20.
PT Bank Rakyat Indonesia is the largest lender in the country, with more than 120 million customers.
According to FWD, the deal, which is subject to regulatory approval, will be “transformational”, allowing it to “work closely with BRI Life to deliver unique customer experience and product propositions to even more customers in one of Asia’s fastest-growing economies”.
FWD first entered Indonesia in 2014 via a strategic alliance with PT Finansial Wiramitra Danadyaksa.
“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,” FWD Chief Executive Officer Huynh Thanh Phong says in the statement.
FWD Group, which is run by Hong Kong tycoon Li Ka-Shing's son Richard Li, had around US$50.9 billion of assets as of December 2019.