Insurance alliance announced
Insurance alliance announced
JAKARTA (JP): New York-based Metropolitan Life (Metlife)
Insurance Company and PT Tunasmas Panduarta of the widely
diversified Tirtamas Group have agreed to set up a joint venture
insurance company.
The company announced yesterday that Metlife would own a 62
percent stake in the new joint venture firm, to be named PT
Metlife Sejahtera.
PT Tunasmas would own 33 percent and Bringin Life, another
local insurance company, would hold the remaining 5 percent.
"We have obtained the approval from the Ministry of Finance.
The joint venture partnership became official after the deal was
finalized yesterday," the statement said.
"Metlife Sejahtera is expected to start selling products and
services by the end of this year," it said.
Len Logan, a veteran Metlife consultant with extensive
experience in Indonesian life insurance, would become the
president of the new joint venture.
Metlife's chairman and chief executive officer, Harry P Kamen,
said that Metlife's entry into the Indonesian insurance industry
reinforced its global strategy of committing its resources to
emerging insurance markets.
"Tunasmas Panduarta is an excellent strategic partner for this
joint venture because it has a keen understanding of the
financial needs of Indonesians," he said.
He said Metlife's experience and commitment to providing
insurance solutions for individuals would complement its
partners' expertise because Metlife could help create financial
security for its future customers in Indonesia.
John H. Tweedie, executive vice president of Metlife's
international operations, said Indonesia's population of 200
million people with a growing middle class would offer a great
potential for the company to grow in Indonesia.
"We believe that enormous opportunities exist for insurers as
Indonesia continues to experience a rapid increase in individual
earnings and population," he said.
He said that Metlife's strategy would focus on developing a
highly trained, professional career agency force and maximizing
Tunasmas Panduarta's affiliation with Bank Papan Sejahtera to
market personal insurance products.
Tweedie said the sales agents would initially focus on selling
individual life insurance policies, including whole life and
endowments which were Indonesia's major insurance products.
"Besides, distribution through Bank Papan Sejahtera will
facilitate the marketing of mortgage reducing insurance products
offered to those bank customers who are getting mortgage loans,"
he said.
Metlife has operations in Argentina, Canada, Hong Kong,
Mexico, Portugal, South Korea, Spain and Taiwan and two
representative offices in China.
Metlife, which currently serves around 40 million people
around the world, has total assets of over US$320 billion. (aly)