Liga Asuransi – Dear readers, how are you? There is some interesting news about the signs of an economic revival in recent days.
As you probably already know that from today March 8, 2022, the Indonesian government announced that for every land, sea and air trip, antigen and PCR tests are no longer needed.
It seems that the COVID-19 outbreak is over in Indonesia as well as around the world. Great, It’s time to refocus on completing the pending works and starting new projects.
Yes, there is still a global threat, war between Russia and Ukraine that is still raging. May this war end soon.
Well as always, we will write down some of the latest news around the Indonesian insurance industry for you.
Out of a lot of important things that happened, there was shocking news about the resignation of Mapfre, an insurance company from Spain from Indonesia.
On the other side, the continuation of the selection of candidates for the Board of Commissioners of the Financial Services Authority (OJK) is getting narrowed to some names. Just waiting for the approval of the President and the parliament.
Hopefully the selected one for the Financial Industry sector and banks that include insurance are figures that can bring this industry forward.
We also selected news about the ranking of life insurance companies based on their performance in 2021. Prudential remained on top, and Allianz was knocked out of the top five.
We also selected news about the ranking of life insurance companies based on their performance in 2021. Prudential remained on top, and Allianz was knocked out of the top five.
We hope this news can be useful for you. If you are interested in this article, please share with your colleagues so that they also understand you.
Leaving Indonesia, Mapfre Will Sell All ABDA Shares for Almost Rp1 Trillion
Bisnis.com, JAKARTA
Spanish insurance company, Mapfre Internacional SA, decided to leave the Indonesian insurance market.
As a follow-up to his decision, Mapfre will also sell all his shareholdings in PT Asuransi Bina Dana Arta Tbk. (ABDA) and PT Mapfre ABDA Assistance which amounted to 62.33 percent and 51 percent respectively to Aseana Insurance Pte. Ltd. “The transaction reached US$ 62.9 million dollars, equivalent to approximately €56.6 million,” Mapfre management wrote in its official announcement, quoted Tuesday (03/08/2022).
Assuming a dollar exchange rate of Rp14,411, the transaction reached Rp906.45 billion. Mapfre entered ABDA’s shareholders through acquisitions in 2013 and 2017 for a total of €152.59 million.
The value was recorded to fall in 2019 and 2020 by €102 million. ABDA Assistance was founded by Mapfre Asistencia in 2015 and has a total equity of €775,000.
The definitive closing of this transaction will be carried out in accordance with the terms of the contract, which includes approval from the relevant authorities,” Mapfre said in a statement.
Through the disclosure of information on the Indonesia Stock Exchange (IDX), Monday (7/3/2022), ABDA management announced negotiations between the company’s shareholders, namely Mapfre Internacional SA and Aseana Insurance Pte. Ltd. in connection with the company’s planned takeover.
ABDA management said that on March 6, 2022, Aseana and Mapfre had signed a share sale agreement, under which Aseana plans to buy 386,924,893 shares in Mapfre’s company which is 62.33 percent of all shares issued by the company. “If the takeover plan as negotiated between Mapfre and Aseana is finalized, it will result in the company’s control turning to Aseana,” abda president director Herliniawaty Sutanto wrote.
The Company does not expect the above material information and facts to reduce the rights of policyholders, insured or participants. Furthermore, ABDA stated, in implementing the takeover plan, Aseana will pay attention to and comply with applicable laws and regulations, including POJK 9/2018 and regulations regarding insurance companies.
When the takeover plan has been completed, Aseana will carry out a mandatory tender in accordance with the provisions of POJK 9/2018,” said Herliniawaty. In the negotiation announcement published by Aseana, Monday (03/07/2022), it was mentioned that the purpose of the takeover plan was to build a new prospective controlling insurance business or Aseana in Indonesia.
As of the date of the announcement, Aseana had a 24.85 percent stake in ABDA. If the takeover plan is completed, the new would-be controller of ABDA with a shareholding of about 87.18 percent.
Aseana Insurance is a Singapore-based company owned and supported by funds managed by Warburg Pincus LLC or its affiliates. Aseana conducts business activities in the form of investments in the field of insurance.
The big hope of The Candidate of the Chairman of the Board of Commissioners of OJK
KONTAN.CO.ID – JAKARTA.
The Committee for the Selection of Candidates for the Board of Commissioners of the Financial Services Authority ((OJK) has announced three candidates for chairman of the OJK. The three candidates are Mahendra Siregar, Darwin Cyril Noerhadi, and Iskandar Simorangkir.
Executive Director of the Indonesian Life Insurance Association (AAJI) Togar Pasaribu assessed that the three candidates were quite qualified, also had long experience and strong leadership.
“Hopefully the chosen one can solve the problems in the financial industry. Therefore, hopefully we can synergize and collaborate professionally with stakeholders in the financial industry. At this time, it can no longer work alone, it needs collaboration with all stakeholders,” Togar told kontan.co.id, Monday (7/3).
Togar said, which should be the focus of candidates, not only on consumer protection, but also protection of businesses and people of the financial industry by making regulations / laws / laws as a common reference.
Meanwhile, according to him, the challenges that will be faced by the elected chairman of the OJK will be many, but if it is worked together by collaborating with all stakeholders, it can certainly be overcome.
Digital transformation in the financial industry, both for supervision, examination, also said Togar will greatly help OJK in carrying out its tupoksi. “My hope is that the elected Chairman of the OJK Council will hopefully be able to protect all stakeholders in the financial industry,” said Togar.
Vice Chairman of the Indonesian General Insurance Association (AAUI) for Information and Applied Technology Dody Dalimunthe also assessed that all candidates who had passed from selection were qualified and the best in their respective fields.
“This is believed to be because the committee is filled by people who have high credibility in netting and selecting candidates. Thus, one figure from the three choices in each field will also be the ideal commissioner to lead OJK in the future, “said Dody.
Dody said, the commissioner’s focus in the future is of course to maintain the OJK’s spirit and bring this institution to be an independent and credible supervisor of the financial services sector in realizing a resilient, growing, sustainable financial services industry and able to protect consumers and the public by facilitating equitable and welfare financial services sector policies.
Dody explained, some of the challenges that will be faced and even already in sight include how the OJK policy quickly mitigated the covid-19 pandemic against economic recovery.
In addition, how to increase public confidence in the financial services industry because of the emergence of these industry problems that affect the perception and level of public trust.
This is the Largest Conventional Life Insurance Company in Terms of Assets in Q4-2021
KONTAN.CO.ID – JAKARTA.
Some of the conventional life insurance companies that have the largest assets in Indonesia have issued their financial performance in the quarter ended December 31, 2021. In the majority, asset growth is still recorded amid the shadow of the Covid-19 pandemic that still exists.
Meanwhile, the position of the insurance company with the largest assets is still occupied by Prudential Indonesia with total assets reaching Rp 64.46 trillion. Although, there was a correction that occurred in total assets of 4.35%.
The decrease in total assets was influenced by investment assets which also decreased from Rp 63.45 trillion to Rp 60.62 trillion. Placement in gold also dominates with a value of Rp 32.64 trillion.
In the second position, there is Manulife Indonesia which recorded its total assets reaching Rp 59.77 trillion. This increase increased by 4.35% when compared to the same period last year.
Furthermore, the third and fourth positions are occupied by AIA Financial and Indolife Pensiontama. Each recorded total asset of Rp 52.73 trillion and Rp 39.1 trillion. Finally, AXA Mandiri Financial filled the fifth position with total assets of Rp 39.08 trillion. The company also posted growth of up to 9.74% yoy.
Interestingly, Allianz Life no longer occupies the top five positions with total conventional assets of Rp 39.02 trillion or up 1.40% yoy. In fact, in the previous quarter, Allianz Life occupied the fourth position with asset growth can reach 14.28%.
Allianz Life Indonesia Chief Marketing Officer Karin Zulkarnaen also said that the company’s total assets can still grow because it is supported by business growth reflected by the company’s premium income. Noted, Allianz Life premium income reached Rp 18.23 trillion or up 11.8% yoy.
In addition, investment assets also support the growth of the company’s total assets at a time when the Covid-19 pandemic is still the biggest challenge. Allianz Life’s investment assets were recorded at Rp 33.97 trillion from Rp 32.94 trillion.
“This positive growth is also supported by improved market conditions, so that investment assets from Allianz Life Indonesia also grow,” Karin said.
Meanwhile, Prudential Indonesia Chief Marketing and Communications Officer Luskito Hambali also revealed that the slowdown in the company’s total assets was caused by increased payment of claims and benefits, as an embodiment of the company’s commitment in providing life, health, and financial protection for customers.
Nevertheless, the company was able to record a growth in investment returns to Rp 2.53 trillion. In fact, in the same period in the previous year, investment results were in a negative position of Rp 519 billion,
“In the short term, investments in stocks have the risk of fluctuations, but in the long run stocks are expected to provide more optimal returns,” Luskito told KONTAN.
Luskito added that it has always focused on investment in various sectors that tend to be resilient when economic growth slows, in line with long-term economic growth such as consumption, health, and communication that are expected to reduce volatility.
“Regarding bond investment assets, we concentrate on government bonds that are considered more liquid to minimize risk but at the same time can remain effective in improving performance when the market recovers.”
FWD Increases Shares in BRI Life, BRI Shares (BBRI)
Bisnis.com, JAKARTA
FWD Management Holding Limited made capital additions to PT Asuransi BRI Life so that the shareholding increased to 35.14 percent.
This transaction was carried out to strengthen the business development of BRI Life. Fwd capital addition is conveyed through the disclosure of information of PT Bank Rakyat Indonesia (Persero) Tbk. or BBRI on the Indonesia Stock Exchange on Friday (4/3/2022).
FWD is recorded to have made capital additions to BRI Life of 255,549 shares through the issuance of new shares on March 2, 2022. This transaction resulted in a change in BRI Life’s shareholding structure.
After the transaction the Hong Kong company now holds 35.14 percent of BRI Life’s shareholding or 1,192,007 shares out of a total of 3,392,007 shares.
Meanwhile, Bri’s shareholding was reduced from 63.83 percent to 59.02 percent or 2,002,022 shares.
The rest, owned by the Workers Welfare Foundation (YKP) BRI as much as 5.84 percent. Nevertheless, BRI remains the controlling shareholder in BRI Life. “In connection with the addition of capital, the company remains as the controlling and consolidating shareholder,” said BRI Corporate Secretary Aestika Oryza Gunarto.
Aestika said the transaction was carried out to support the business development of BRI Life to achieve the company’s aspiration to provide integrated financial services for the community. Previously, BRI Life President Director Iwan Pasila said, the company will still issue new shares to be absorbed by FWD until 2024.
This is part of a strategic cooperation between the parent company and FWD. “There are still additional shares that we will issue in the next 3 years. On March 2, 2022, March 2, 2023, and March 2, 2024, we will still issue shares that in the end in 2024 FWD will become shareholders of about 44 percent,” said Iwan some time ago.
FWD officially entered as a shareholder of BRI Life in March 2021. Last year, FWD recorded an additional capital of 936,458 shares to BRI Life through the issuance of new shares so that it owns 29.86 percent of BRI Life shares.
With the addition of the shareholding by FWD until 2024, bri ownership portion will remain majority in the position of 51 percent and the remaining almost 6 percent will be owned by YKP BRI. Iwan explained that this transaction was carried out to support the business development of BRI Life.
The joining of FWD is expected to bring digital expertise and insurance to strengthen BRI Life’s business.
This information is provided by L&G Insurance Broker.
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