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)