Astra International, Aviva Forming Life-Insurance Joint Venture

  By I Made Sentana 
 

JAKARTA, Indonesia--PT Astra International (ASII.JK) and the United Kingdom's Aviva Plc (AV.LN) are forming a life-insurance joint venture, Astra International said on Friday.

The equal joint venture is expected to be operational later this year after receiving regulatory approval, the Indonesia motor-vehicle, financial, mining, plantation, power generation and toll-road company said.

"This joint venture creates a compelling growth opportunity, underlines our commitment to Asia and supports our strategy of cash flow plus growth," Aviva's Chief Executive Mark Wilson said.

Aviva is the second foreign insurer to enter Indonesia in the past month attracted by a 245 million population, annual economic growth above 6% and low insurance coverage.

In June last year, Dai-ichi Life Insurance Co. (8750.TO) agreed to pay more than $300 million for a 40% stake in PT Panin Life.

several local insurance companies are seeking foreign partners, too.

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