Sources say Maybank's Etiqa mulling bid for Mega Life Asuransi Jiwa

December 2
4:21 AM 2013

Sources interviewed by Bloomberg said the Etiqa insurance arm of Malayan Banking or Maybank is thinking of making an offer for Indonesian insurance firm Mega Life Asuransi Jiwa. One of the people said Etiqa has already conducted preliminary talks with Mega Life. Two sources also revealed that the shareholders want to sell up to 80% of the company for a price tag that ranges from USD 200 million to USD 300 million. The insurer's stakeholders are Sinar Mas Multiartha and CT Corp.

According to the report, Maybank has purchased assets in faster-growing markets to achieve its goal of generating 40% of its operating profit overseas in two years Maybank is the biggest lender in Malaysia.

Etiqa Chief Executive Officer Kamaludin Ahmad told Bloomberg through email that Indonesia was definitely an area of interest for the insurance company and that they will follow Maybank's Southeast Asian expansion. He added they are also open to discussions with various parties but did not comment on the talks about Mega Life.    

Citing a Maybank presentation, the report said Etiqa was created through the merger of a number of insurance firms and Islamic insurers. As of September, it had MYR 28 billion or USD 8.7 billion in assets. Data gathered from its website revealed that Etiqa's products are distributed through the more than 450 branches of Maybank, 23,000 insurance agents, 30 insurance branches as well as third party banks and ATMS.

Maybank also holds an 88% stake in Bank Internasional Indonesia. It is the eighth-biggest lender in Indonesia in terms of market value. Meanwhile, Mega Life was formed as a joint venture between Sinar Mas Group and CT Corp ten years ago. The Jakarta-based insurer has so far issued 1 million policies in the country, based on information taken from the website of CT Corp. 

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