AMP Panin Life sold to Dharmala Manulife

AMP Panin Life sold to Dharmala Manulife

JAKARTA (JP): Publicly listed PT Panin Life and Australian
Mutual Provident Society (AMP Society) have sold their stakes in
PT AMP Panin Life to PT Dharmala Manulife for Rp 22.8 billion
(US$6.33 million).

Panin's president Fadjar Gunawan said yesterday his company
sold its 35 percent stake in AMP Panin, a joint venture with AMP
Society, to consolidate its business.

"When we first started AMP Panin in 1994, it was meant to
cover the middle to upper segment of life insurance, while Panin
Life would cover the middle and lower segment," Fadjar said.

"But it turned out that both companies covered the same
market, which was the middle to upper market," he said.

The sale was approved by Panin Life's shareholders during the
company's extraordinary general shareholders meeting on Oct. 23.

AMP Society also sold its 65 percent stake in the company to
Dharmala, Fadjar said.

AMP Panin Life has seven branches, and by the first three
quarters of this year, the company's premium income reached Rp
1.9 billion, he said.

Fadjar said Panin Life would use the funds from the sale for
further investment.

Panin Life's assets were Rp 422 billion as of last August. It
projected that net profit for this year would reach about Rp 30
billion, he said.

Fadjar claimed Panin Life's domestic market share was about 5
percent. (das)