Sun Life ups insurance stake

JAKARTA (JP): Insurance company PT Asuransi Modern Sun Life announced yesterday that one of its shareholders the Sun Life Assurance Company of Canada had agreed to raise its stake in the firm from 60 percent to 80 percent.

Asuransi Modern president James Van Harmelen said the Canadian firm's stake increase would boost Asuransi Modern's capital to Rp 50 billion (US$50 million), making it one of the biggest life insurance firms in Indonesia in terms of capital.

He said the firm's Canadian partner would inject Rp 15 billion in fresh funds into the company's equity.

The remaining 20 percent of the company's shares are being held by Indonesia's Modern Group.

"Sun Life's move proves foreign investors have faith in the prospects of the life insurance business in Indonesia," he said.

Sun Life Assurance of Canada is an international financial institution with total assets of over US$120 billion as of last year.

Toronto-based Sun Life operates throughout the United States, the United Kingdom and Asia-Pacific region. (gis)