Bank Indonesia has lowered the minimum limit for foreign exchange swap hedging from banks to the central bank to $2 million from $10 million, to appeal to wider customers. (Reuters Photo/Kham)
US Prudential Acquires 49 Percent Stake in CT Corp Life Insurance Subsidiary
BY :SARAH YUNIARNI
JULY 19, 2017
Jakarta. Prudential Financial, a multinational company headquartered in the United States, has partnered with Indonesian diversified group CT Corp to form a joint venture life insurance company in an effort to expand its footprint in Southeast Asia's biggest economy.
The partnership is forged through Prudential's Pruco Life Insurance Company, which has acquired a 49 percent stake in Asuransi Jiwa Mega Indonesia, the life insurer unit of CT Corp, a conglomerate group controlled by tycoon Chairul Tanjung, the companies said in a joint statement on Tuesday (18/07).
The statement did not disclose the financial terms of the deal.
"We are pleased to partner with CT Corp, which controls one of Indonesia’s largest and most prominent business groups, as we enter this market for the first time to introduce our offerings and capabilities to serve the needs of the Indonesian market," executive vice president and chief operating officer at Pruco Life Insurance Company Charles Lowrey said in the statement.
"The partnership advances our business growth strategy by expanding Pruco's international footprint into an attractive market with long-term growth potential, low insurance penetration and a well-developed regulatory environment," he said.
The acquisition was wrapped up on July 3.
Pruco Life is a life insurance company that offers products through a third party, such as independent brokers, banks and financial institutions.
The company serves retail and institutional customers in 40 countries worldwide, including Japan, Malaysia, India, Taiwan and South Korea.
US Prudential highlighted the company and its subsidiaries are not affiliated with Prudential Life Assurance, an Indonesian subsidiary of UK-based Prudential Plc.
"The needs for life insurance are increasing, as disposable income, life expectancy and financial literacy are also improving in Indonesia. PFI’s 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," Chairul Tanjung, chairman and founder of CT Corp, said.
Established in 2011, Asuransi Mega Jiwa Indonesia operates under Mega Corpora, a financial firm parent that also controls banking, insurance, financing and capital market for CT Corp.
Mega Corpora has a 99.99 percent stake in Asuransi Mega.
CT Corp controls business in a wide range of industry, including lifestyle, media, retail, financial services and entertainment. The company also operates publicly listed lender Bank Mega, free-to-air TV stations Trans TV and Trans 7 and retail stores Carrefour and Transmart.