Hanwha Life Insurance Co., South Korea’s second-largest life insurer, will be investing heavily in the Indonesian market, pouring US$132m in its operations in the Southeast Asian country.
This latest investment comes after a previous one worth US$35.32bn made in October 2013, which marked Hanwha Life’s entry into Indonesia. The company considers Indonesia as the second gateway to the ASEAN market, after Vietnam. Hanwha Life has around US$88bn worth of investments in Vietnam.
According to a representative of the company, the Indonesian market is very promising, as it is expected to grow at an average of 10% each year. In Vietnam, Hanwha Life generated its first quarterly profit for Q1 of this year and was ranked 8th
among 17 life insurers in the market.
Of the US$132m to be invested in Indonesia, around US$70m will be used to broaden the sales network, as well as purchase Indonesian sovereign bonds, which are expected to yield a 7% return per annum. The company also plans to increase the number of agents, from 1,200 to 12,000, and branches, from 10 to 44, by 2025.
Hanwha Life also seeks to expand its bancassurance partnerships in Indonesia, as it signed memorandums of understanding with Bank KEB Hana Indonesia in November 2015 and with Bank Woori Saudara in June 2016.
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AM Best places Hanhwa General’s rating under review