AXA Group plans to establish a general insurance joint venture with Bank Mandiri in Indonesia. The new JV entity will be launched later this year. It aims to sell general insurance products to the customers of the Mandiri Group and will build on the existing successful life insurance joint venture AXA Mandiri Financial Services which was formed in 2003. AXA Mandiri, a strong and recognized brand in Indonesia, currently offers life and savings products and has a Bancassurance market share of 33%. In 2010, its total premiums were 2,820.2 billion Rp and net profit was 479.9 billion Rp.
Mike Bishop, CEO of AXA Asia, says “We are delighted with this development which will further strengthen our very successful partnership with Bank Mandiri. We strongly believe in the strategic attractiveness of the Indonesian general insurance market with its superior growth and profitability potential. The new general insurance joint venture will combine the strengths of Bank Mandiri, the largest bank in Indonesia, with AXA, one of largest insurer in the world and will allow us to leverage the strength of our existing AXA Mandiri brand. We are very excited to extend the scope of our successful collaboration with Bank Mandiri as it will allow us to build a significant general insurance presence in Indonesia and deepen AXA’s commitment in Asia.”
For this start up joint venture operation, Bank Mandiri together with AXA will acquire Asuransi Dharma Bangsa (ADB) in which Bank Mandiri will own 60% and AXA 40%. Following the acquisition by Bank Mandiri and AXA, Asuransi Dharma Bangsa is expected to have paid up capital of one hundred billion Indonesian Rupiah (approx 8m Euro)."
The transaction is subject to the finalization of agreements, relevant shareholder approvals, as well as regulatory approvals. AXA is targeting to launch the new joint venture later this year subject to receiving all required approvals.
AXA Group is a worldwide leader in insurance and asset management, with 216,000 employees serving 93 million clients. In 2010, IFRS revenues amounted to Euro 91 billion and IFRS underlying earnings to Euro 3.9 billion. AXA had Euro 1,104 billion in assets under management as of December 31, 2010. The AXA ordinary share is listed on compartment A of Euronext Paris under the ticker symbol CS (ISN FR 0000120628 – Bloomberg: CS FP – Reuters: AXAF.PA). AXA’s American Depository Shares are also quoted on the OTC QX platform under the ticker symbol AXAHY. The Group is included in the main international SRI indexes, such as Dow Jones Sustainability Index (DJSI) and FTSE4GOOD.
AXA Asia operations are located in Singapore, Malaysia, Indonesia, Thailand, Hong Kong, China, India, Vietnam and Philippines. A total of 15,000 AXA employees, offering customers a wide range of life, savings and general insurance products.
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