A merger of Indonesia reinsurers could create the biggest reinsurance business in ASEAN, according to reports.
The merger between Reasuransi Internasional Indonesia (ReIndo) and PT Reasuransi Indonesia Utama (Indonesia Re) will create a major firm in the region, reported Antaranews.com
President director of IndonesiaRe, Frans Y. Sahusilawane, noted that the size and strength of the new entity makes it the largest in the ASEAN region.
"With total assets of Rp6 trillion after the merger, Indonesia will have a large and sturdy reinsurance company that makes IndonesiaRe the largest reinsurance company in ASEAN," Sahusilawane said, according to Antaranews.com
The merger agreement was signed last week and witnessed by deputy minister of state-owned enterprises for financial services, survey and consultants, Gatot Trihargo, and director of the chief executive of the finance service authority, Firdaus Jaelani.
Sahusilawane noted that the potential for the reinsurance industry in Indonesia is great.
"The potential of the reinsurance market in Indonesia is very large in terms of premiums, which are in line with Indonesia’s gross domestic product and penetration rates that are still lower than other ASEAN countries, such as Malaysia, Thailand and Vietnam," Sahusilawane said.
As part of the merger, IndonesiaRe will run reinsurance businesses supported by two subsidies, general insurance firm Insurance Asei Indonesia and Reasuransi Syariah Indonesia, a Sharia reinsurance business.
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