JAKARTA, Indonesia, June 22, 2020,/PRNewswire/ — PT Bank Rakyat Indonesia (Persero) Tbk (BRI), the largest bank in Indonesia and FWD Group (FWD), a leading insurance company in Asia announced its strategic cooperation plan in life insurance today. As part of the collaboration process, FWD has signed a Conditional Share Subscription Agreement to inject capital in the form of new stock into PT Asuransi BRI Life (BRI Life), a subsidiary of BRI. The transaction is still in the process of approval from regulators and other related stakeholders.
Sunarso, President Director of Bank Rakyat Indonesia, said, “This transaction shows that Indonesia is still attractive to foreign investors. We are pleased to be working with FWD, one of the leading insurance companies in Asia. FWD will inject capital into BRI Life, but BRI will still be the major stakeholder in BRI Life. After the transaction process is complete, BRI and BRI Life will make a 15 years partnership agreement to develop the life insurance business.”
This partnership will have a positive impact on all parties, including customers and other stakeholders. Bank Rakyat Indonesia itself will strengthen the value proposition for its customers. Then, BRI Life will benefit from the expertise of the FWD as a well-established company in bancassurance to help BRI Life enrich its product development, distribution, underwriting, risk management, operations, and digital technology. As for FWD, this partnership is a great opportunity to strengthen its presence and commitment to the Indonesian market and reinforce its existence as a leading company in the bancassurance industry.
Insurance is an important part of BRI’s overall business, and BRI hopes that BRI Life can become a major player in the Indonesian life insurance industry. Sunarso added, “We believe in FWD’s expertise, track record and ability, also supported by our customer base and our passion for growth, this is an ideal partnership to achieve this dream. Looking ahead, BRI’s position as a market leader, both in the micro and consumer segments and supported by a vast operational network, digital technology, this partnership will create long-term value for customers and stakeholders,” explained Sunarso.
In assisting the completion of this transaction, Bank Rakyat Indonesia appointed Morgan Stanley as a financial consultant, Hadiputranto Hadinoto & Partner as a legal consultant and Pinnacle as an actuarial consultant.