Zurich Insurance and Cardif plan to buy Indonesian insurer Astra Life

Zurich Insurance Group and insurer Cardif are among the parties considering bids for PT Astra International’s life insurance arm, according to Bloomberg.

Astra International, a Jakarta-listed conglomerate, has been working with a financial adviser on a review of Astra Life.

Options under consideration include setting up a joint venture and a full or partial sale that could value the business at as much as $500 mn.

The insurance companies have started evaluating potential offers for the Indonesian firm’s life business as they seek to bolster their exposure to the southeast Asian economy, the people said, asking not to be identified because the matter is private.

A deal could also involve a so-called bancassurance partnership, in which an insurer is permitted to sell its products in a bank’s branches and other retail channels for a set period.

Deliberations are still preliminary and a formal sale process for PT Asuransi Jiwa Astra, known as Astra Life, is yet to kick off.

The companies may decide against pursuing a transaction and other buyers could emerge. Representatives for Cardif and Zurich Insurance declined to comment, while a spokesperson for Astra didn’t immediately respond to requests for comment.

Founded in 1872, Zurich Insurance is active in more than 200 countries and territories. Business operating profit — $6.5 bn in 2022, a 12% increase from the previous year.

With a presence in more than 30 countries in Europe, Asia and Latin America, Cardif’s gross written premiums reached €30 bn in 2022.

by Yana Keller