Jakarta, Indonesia (16 March 2009) - CIMB Group and Sun Life Financial today entered into an agreement to form a joint venture life insurance company. The new entity, which is planned to be formally launched later in the year, will deliver life insurance products and services building on the combined strengths of the two organizations.
The agreement was signed by Stephan Rajotte, President, Sun Life Financial Asia and Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group. The joint venture is expected to capture a share of the Indonesian insurance market, which recorded total premiums of US$4.7 billion and growth of 67% in 2007, the fastest growth rate in Asia.
The strategic partnership sees CIG (a 100% owned entity of CIMB Group) divesting a 49% stake in PT Commerce International (PTCI) to Sun Life Financial. The remaining 51% of PTCI will be owned by CIG and CIMB Niaga. The arrangement is subject to contract and regulatory approval. Upon completion, PTCI will be rebranded as CIMB Sun Life.
“This is a significant milestone for Sun Life Financial in Indonesia and reaffirms our commitment to the country and strengthens our solid base in Indonesia,” said Stephan Rajotte, President, Sun Life Financial Asia. “There is a tremendous opportunity in the bancassurance market in Indonesia and we’re pleased to partner with CIMB Group to realize this potential and offer Indonesians greater access to insurance products and services.”
“We are extremely positive about our businesses in Indonesia, and this proposed joint venture demonstrates our continued commitment to investing in Indonesia. Having successfully merged Bank Niaga and Bank Lippo to form CIMB Niaga, we look forward to delivering more value to CIMB Niaga customers through a bancassurance offering that will result from this partnership,” said Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group.
“The opportunity that exists is huge. We believe that this joint venture will bring with it a compelling proposition to address this market segment, and continue to see CIMB Niaga deliver another component of universal banking to its customers,” added Nazir.
Targeted for launch later in the year, CIMB Sun Life will leverage the combined strengths of the two organizations: Sun Life Financial’s insurance expertise and infrastructure, and CIMB Group’s extensive treasury capabilities and distribution strength. It aims to become the major provider of life, accident and health insurance products to CIMB Niaga customers, offered through its network of over 650 branches and direct channels throughout Indonesia.
CIMB Sun Life will bring a new dimension to Sun Life Financial’s presence in Indonesia. It will operate separately from SLF Indonesia, which will continue to focus on delivering lifetime financial security to its customers throughout the country.