PT Astra CMG Life set for expansion<\/p>\n
JAKARTA (JP): Joint venture PT Astra CMG Life plans to acquire
\nup to 10 local life insurance companies in its expansion
\nstrategy.<\/p>\n
Company president Steve Heald said on Tuesday the deals were
\nstill in negotiation but were expected to be finalized by the end
\nof the year.<\/p>\n
"Acquisition is an effective way of boosting our growth amid
\nthe currently depressed condition of the life insurance
\nindustry," he told a news briefing.<\/p>\n
He said the insurance company allocated about Rp 45 billion
\n(about US$6 million) for the acquisition plan.<\/p>\n
Heald added that the new minimum capital requirement of Rp 100
\nbillion for life insurance firms would force ailing companies to
\nmerge or sell their companies in order to survive.<\/p>\n
"This is a good opportunity for our company to expand," he
\nadded.<\/p>\n
He said Astra CMG would open five new branches later this year
\nto expand its nationwide network to 25 in provincial capitals.<\/p>\n
"We expect to increase our market share of individual life
\npolicyholders from 3 percent now to 10 percent within five
\nyears," Heald said.<\/p>\n
The company, which is an equal partnership between Indonesia's
\nAstra International and Australia's Colonial Mutual Group (CMG),
\nhas 315,000 customers, he added.<\/p>\n
Marketing director Suparno Djasmin said the company booked an
\nincrease of 50 percent in total premium income to Rp 32 billion
\nin the first half of the year.<\/p>\n
Suparno said Astra CMG, the third largest joint venture life
\ncompany, expected a 55 percent increase in premium income for the
\nyear. (01)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-astra-cmg-life-set-for-expansion-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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