US life giant Prudential Financial and Indonesian consumer-focused business group CT Corp have created a joint venture to provide life insurance solutions to the Indonesian and Asian marketplace.
The new joint venture, announced via statement, will offer the Prudential’s products via a multi-channel distribution strategy.
Under the agreement, Prudential Financial’s Pruco Life Insurance Company has acquired a 49% interest in CT Corp’s wholly-owned life insurance subsidiary Asuransi Jiwa Mega Indonesia. The deal has now been formally approved by the Financial Services Authority of Indonesia.
“We’re pleased to partner with CT Corp, which controls one of Indonesia’s largest and most prominent business groups, as we enter this market for the first time to introduce our offerings and capabilities to serve the needs of the Indonesian market,” said Charles Lowrey, (pictured left), executive vice president and chief operating officer of Prudential’s International businesses.
“The partnership advances our business growth strategy by expanding our international footprint into an attractive market with long-term growth potential, low insurance penetration and a well-developed regulatory environment.”
“We believe CT Corp’s customer reach and strong brand presence, together with Prudential’s longstanding insurance and asset management expertise—supported by our operational and technological processes, product innovation, risk management and talent—will expand options for Indonesia’s growing middle class to gain financial protection for their families.
Prudential Financial, has more than US$1trn of assets under management as of March 31, 2017, has operations in the United States, Asia, Europe, and Latin America. Prudential launched its first Asian life insurance business in Japan in 1988, since expanding to Taiwan, South Korea, India, China and Malaysia, before forming this new joint venture in Indonesia.
As of Dec. 31, 2016, the company had approximately US$3.7trn of gross life insurance in force worldwide, including Closed Block policies.
Chairul Tanjung, chairman and founder of CT Corp, said: “The need for life insurance is increasing as disposable income, life expectancy and financial literacy improves in Indonesia. Prudential’s strong products and operational capabilities combined with CT Corp’s extensive presence and deep understanding of the local market will help provide better protection to our people and in turn strengthen the social and economic potential of Indonesia.”
Founded in 1987, CT Corp is the largest Indonesian consumer-focused company, managing more than $10 billion in assets and more than 100,000 employees. The group is a leading player in the financial services, media, retail, property, lifestyle and entertainment sectors in Indonesia.