BCA Exploring Options for Its Life Insurance Unit

By Editorial Team 20/06/2023
M&A
Summary

PT Bank Central Asia Tbk (BBCA) is considering strategic options for its life insurance unit, including a potential stake sale, according to Reuters' sources with knowledge of the matter. The Jakarta-listed lender, which has a market value of US$74 billion as of Monday, is working with an adviser on a strategic review of PT Asuransi Jiwa BCA, also known as BCA Life, the sources said.

Other options under consideration include establishing a joint venture with a foreign partner or a bancassurance partnership where an insurer can sell its products and services in a lender's branches for a period of time, the sources added. A spokesperson for the bank declined to confirm or deny the developments.

Reuters could not immediately ascertain the potential size of any stake to be sold or how much the unit would be valued at in such a deal. BCA Life had total assets worth Rp 2.34 trillion as of Dec 2022.

"In principle, BCA and its subsidiaries are always open to collaborating with strategic partners to expand our services while supporting business growth," BCA spokesperson Hera Haryn said. Many industry players were interested in taking advantage of Indonesia's potentially large life insurance market.

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