Thu, 16 Dec 1999

EIG, Lippo form alliance

JAKARTA (JP): American International Group, Inc (AIG), a U.S.- based insurance organization, has entered into an agreement to purchase a 70 percent stake in PT Asuransi Jiwa Lippo Utama, a subsidiary of PT Asuransi Lippo Life.

With the purchase, PT Asuransi Jiwa Lippo Utama will become a joint venture which will be renamed PT Asuransi AIG Lippo Life (AIG Lippo Life), the two companies said in a statement.

The joint venture company will market life, pension and health products to Indonesians through the existing distribution network.

The investment in AIG Lippo Life significantly strengthened AIG's life insurance presence in Indonesia, Edmund Tse, AIG vice chairman for life insurance, said after the signing of the agreement here on Wednesday evening.

He said that AIG's existing life insurance operations in Indonesia conducted through American International Assurance Company would continue to operate and would not be consolidated into the new joint venture.(hen)