Later in the year, AXA plans to establish a general insurance joint venture with Bank Mandiri in Indonesia. It aims to sell general insurance products to the customers of the Mandiri Group and will build on the existing successful life insurance joint venture AXA Mandiri Financial Services which was formed in 2003.
AXA Mandiri, a strong and recognized brand in Indonesia, currently offers life and savings products and has a Bancassurance market share of 33%. In 2010, its total premiums were 2,820.2 billion Rp and net profit was 479.9 billion Rp.
Mike Bishop, CEO of AXA Asia, says “We are delighted with this development which will further strengthen our very successful partnership with Bank Mandiri. We strongly believe in the strategic attractiveness of the Indonesian general insurance market with its superior growth and profitability potential. The new general insurance joint venture will combine the strengths of Bank Mandiri, the largest bank in Indonesia, with AXA, one of largest insurer in the world and will allow us to leverage the strength of our existing AXA Mandiri brand. We are very excited to extend the scope of our successful collaboration with Bank Mandiri as it will allow us to build a significant general insurance presence in Indonesia and deepen AXA’s commitment in Asia.”
For this start up joint venture operation, Bank Mandiri together with AXA will acquire Asuransi Dharma Bangsa (ADB) in which Bank Mandiri will own 60% and AXA 40%.
Following the acquisition by Bank Mandiri and AXA, Asuransi Dharma Bangsa is expected to have paid up capital of one hundred billion Indonesian Rupiah (approx 8m Euro).
The transaction is subject to the finalization of agreements, relevant shareholder approvals, as well as regulatory approvals. AXA is targeting to launch the new joint venture later this year subject to receiving all required approvals.
Source : AXA Press Release
