By I Made Sentana
JAKARTA, Indonesia--PT Astra International (ASII.JK) and the
United Kingdom's Aviva Plc (AV.LN) are forming a life-insurance
joint venture, Astra International said on Friday.
The equal joint venture is expected to be operational later this
year after receiving regulatory approval, the Indonesia
motor-vehicle, financial, mining, plantation, power generation and
toll-road company said.
"This joint venture creates a compelling growth opportunity,
underlines our commitment to Asia and supports our strategy of cash
flow plus growth," Aviva's Chief Executive Mark Wilson said.
Aviva is the second foreign insurer to enter Indonesia in the
past month attracted by a 245 million population, annual economic
growth above 6% and low insurance coverage.
In June last year, Dai-ichi Life Insurance Co. (8750.TO) agreed
to pay more than $300 million for a 40% stake in PT Panin Life.
several local insurance companies are seeking foreign partners,
too.
Write to I Made Sentana at i-made.sentana@dowjones.com
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