The FINANCIAL — Zurich Financial Services Group (Zurich) announced on June 7 that its subsidiary Zurich Insurance Company Ltd has signed an agreement to acquire 80% of PT Mayapada Life, a Indonesian life insurer focused on the distribution of group and individual life and health plans.
"The seller is the Mayapada Group, an integrated business group with interests across various sectors including financial services, healthcare, property, retail, media, leisure and energy, which will continue to hold 20% of PT Mayapada Life. Subject to the approval of the relevant regulatory authorities, the transaction is expected to close in the third quarter of 2010," Zurich says.
Headquartered in Jakarta, PT Mayapada Life at the end of 2009 had gross written premiums of USD 1.7 million. It has been distributing its life insurance products mainly through tied agents and to a lesser extent through PT Bank Mayapada International Tbk (Mayapada Bank). To ensure immediate access to the Indonesian bancassurance distribution channel, it is planned that the new Zurich controlled entity enters into a long-term distribution agreement with Mayapada Bank. Through this transaction, Zurich establishes its presence in the Indonesian life insurance market, one of the fastest growing life insurance markets in Asia.
Mario Greco, Zurich’s CEO Global Life, 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. The Mayapada Group will be a strong local partner as we seek to build key relationships to grow our business in the Asia Pacific region."