US-based insurance group Prudential Financial and Indonesian conglomerate CT Corp have established a life insurance joint venture in Indonesia.
The joint venture, which has been approved by the Financial Services Authority (OJK), came into existence after a Prudential subsidiary acquired 49% in CT Corp-owned PT Asuransi Jiwa Mega Indonesia.
Charles Lowrey, executive vice president and COO of Prudential Financial’s international businesses, commented: “The partnership advances our business growth strategy by expanding PFI’s international footprint into an attractive market with long-term growth potential, low insurance penetration and a well-developed regulatory environment.”
Meanwhile, Chairul Tanjung, chairman and founder of CT Corp, added: “PFI’s strong products and operational capabilities combined with CT Corp’s extensive presence and deep understanding of the local market will help provide better protection to our people and in turn strengthen the social and economic potential of Indonesia.”
Indonesia is the fourth most populous country in the world, with an average GDP growth of 5.3% in the past 15 years. Life insurance premiums are projected to grow at 13% compounded annual growth rate, but insurance penetration is still relatively low at 1.3% of GDP, which is just a third of neighbouring Malaysia’s figure and half of India’s.
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