17th Jan 2014 06:53
LONDON (Alliance News) - Aviva PLC Friday said it has entered a joint venture with PT Astra International Tbk to create a life insurer - Astra Aviva Life - in Indonesia.
PT Astra International Tbk, Indonesia?s largest publicly listed company with a market capitalisation of about USD25 billion, and Aviva have formed the 50-50 joint venture in order to sell life insurance products in Indonesia.
Aviva said Astra Aviva Life will become the life insurer of choice for Astra and its subsidiaries. The joint venture will also offer life insurance to the wider consumer market through a variety of digital, agency and partner channels, with Astra Aviva Life set to enter into distribution arrangements with a number of the Astra group companies, including PermataBank, subject to regulatory approval.
"Astra is a hugely respected household name in Indonesia and the ideal partner for Aviva in one of the world?s fastest growing insurance markets. This joint venture creates a compelling growth opportunity, underlines our commitment to Asia and supports our strategy of cash flow plus growth," Mark Wilson, chief executive, said in a statement.
The joint venture is expected to be launched later in 2014, subject to regulatory approval.
By Samuel Agini; [email protected]; @samuelagini
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