Sources indicate that Zurich and BNP's Cardif are considering making offers for Astra's Life Insurance Company
According to anonymous sources, Zurich Insurance Group AG and BNP Paribas SA's Cardif unit are among the potential bidders for PT Astra International's life insurance division.
These insurance companies are reportedly evaluating possible offers for the Indonesian firm's life insurance business, aiming to increase their presence in the Southeast Asian economy. The sources have requested to remain anonymous as the matter is confidential.
It should be noted that the discussions are in the early stages, and no formal sales process for PT Asuransi Jiwa Astra (Astra Life) has commenced. The insurance companies may ultimately decide not to pursue a transaction, and there is a possibility of other buyers expressing interest.
Representatives for Cardif and Zurich Insurance have chosen not to comment, while Astra's spokesperson has not responded to requests for comment at this time, according to Bloomberg.
According to a previous report by Bloomberg News, Astra International, a conglomerate listed in Jakarta, has been collaborating with a financial advisor to review Astra Life. The report suggested that various options were being considered, such as establishing a joint venture or pursuing a full or partial sale, potentially valuing the business at up to $500 million. Additionally, the article mentioned the possibility of a bancassurance partnership, allowing the insurer to sell its products through a bank's branches and other retail channels for a defined period of time.
Zurich Insurance, established in 1872, operates in over 200 countries and territories, as indicated on its website. In 2022, the company reported a business operating profit of $6.5 billion, reflecting a 12% increase compared to the previous year. Although its shares have declined approximately 2% this year, Zurich Insurance's market valuation stands at around $72 billion.
Cardif, which operates in more than 30 countries across Europe, Asia, and Latin America, recorded gross written premiums of €30 billion ($32 billion) in 2022, as stated on its website. The company's pre-tax net profit experienced a 1% increase, reaching approximately €1.4 billion last year.
Recommended news