Japanese life insurance provider Nippon Life Insurance has signed a deal to buy 20% holding in Sequis Life, a life insurance arm of conglomerate Gunung Sewu Kencana (GSK) in Indonesia for IDR4.87trn ($423.9m).
Established in 1984, Sequis Life is one of the leading life insurers in Indonesia offering traditional products, including retirement products, saving products, waiver products, dread solutions, accident riders products, and education products as well as unit link products.
In 2013, the company reported IDR2.27trn ($197.7m) in gross premiums and had IDR9.19trn ($800m) in assets.
Nippon Life said in a statement: "The Indonesian life insurance market has been growing robustly against the backdrop of the fourth-largest population in the world of around 250 million and a growing middle class population.
"This high growth is expected to continue in light of the lower life insurance penetration in Indonesia relative to those of developed nations."
The acquisition allows Nippon Life to strengthen its overseas business following its investments in Thailand in 1997, in China in 2003, and in India in 2011.
The company plans to develop its Singapore subsidiary, NLI International Asia as a regional hub to cater to the local needs and strengthen its regional network with local partners, including Sequis Life.
Image: Nippon Life Insurance headquarters in Chuo-ku, Osaka. Photo: courtesy of 663highland.