BCHB to tap Indonesian insurance mart with tie-up

By Ashwin Raman
Bumiputera-Commerce Holdings Bhd (BCHB) has sold a 49% stake in its Indonesian unit, PT Commerce International (PTCI), to Canada's Sun Life Financial Inc for US$22.7 million (RM84.1 million) to form a joint venture insurance company.
PTCI will be rebranded as CIMB Sun Life and will distribute life insurance products through BCHB's unit, CIMB Niaga, the banking group said in statement on Mar 16. The remaining 51% in CIMB Sun Life will be owned by CIMB Niaga and another unit of BCHB, Commerce International Group Bhd.
BCHB said CIMB Sun Life will be formally launched later this year and will seek to capture a share of the Indonesian insurance market, which recorded total premiums worth US$4.7 billion in 2007.
BCHB's group chief executive officer Datuk Seri Nazir Razak said: "Having successfully merged Bank Niaga and Bank Lippo to form CIMB Niaga, we look forward to delivering more value to CIMB Niaga customers through a bancassurance offering that will result from this partnership."
"The opportunity that exists is huge. We believe that this joint venture will bring with it a compelling proposition to address this market segment, and continue to see CIMB Niaga deliver component of universal banking to its customers."
BCHB said CIMB Sun Life will leverage on the combined strengths of both organisations, specifically Sun Life Financial's insurance expertise and infrastructure and BCHB's extensive treasure capabilities and distribution strength.
It said CIMB Sun Life will aim to become the major provider of life, accident and health insurance products to CIMB Niaga customers through the latter's network of 650 branches and direct channels throughout Indonesia.

CAPTION: Pix 3 - Peter Miller, Director of CIG CIMB Group (no.1 from left), Arwin Rasyid, President Director Bank CIMB Niaga (no. 2 from left), Dato’ Sri Nazir Razak, Group Chief Executive, CIMB Group (no. 3 from left), Stephan Rajotte President Sun Life Financial Asia (no. 4 from left) and, Chris Lossin, President Director Sun Life Financial Indonesia (no.5 from left) during the press conference.

(This story appeared in The Malaysian Reserve on Mar 17, 2009. The Malaysian Reserve is a daily business/finance newspaper published out of Kuala Lumpur, with a sectoral page on insurance & takaful called UNDERWRITER, appearing on alternate Wednesdays, edited by Habhajan Singh.)