AMP to sell insurance unit to Dharmala

AMP to sell insurance unit to Dharmala

SYDNEY (Reuter): The Australian Mutual Provident Society, Australia's largest insurer and funds manager, said on Monday that its joint venture Indonesian life insurance company AMP Panin Life would be sold to Dharmala Manulife.

AMP did not reveal the sale price of the operation, which was owned 65 percent by AMP and 35 percent by Panin Life.

AMP said the sale means that AMP and Panin will concentrate their life insurance interests on the domestic life insurance company Panin Life, which is 40 percent owned by AMP, 50 percent by the Panin group, and the rest owned by the public.

It said the sale to Dharmala Manulife, a venture which involves PT Dharmala Insurance, is subject to the approval of regulators and shareholders.

"AMP and Panin have further agreed to seek appropriate opportunities to coinvest in suitable infrastructure investments in Indonesia," it said.

"AMP is committed to remaining in Indonesia and the sale of AMP Panin Life to Dharmala Manulife will allow AMP and Panin to focus more on improving the profitability and success of Panin Life and to explore infrastructure investment opportunities," AMP group development executive Phil Simmons said.

AMP and Panin set up the joint venture in 1994 under the brand AMP Panin Life.

AMP said this brand name was confused with the Panin Life name and both competed in the same market.