Indonesia-based Bank Central Asia (BCA), the largest Southeast Asian bank by market value, is reportedly considering various options for its life insurance unit, PT Asuransi Jiwa BCA, also known as BCA Life.
The $74 billion-valued bank is working with an adviser for the strategic review of BCA Life, two insiders close to the matter said. Besides a potential stake sale, other options under consideration also include a joint venture with a foreign or bancassurance partner.
According to a report from the CNA, a BCA spokesperson declined to comment on the matter. Further reporting from Reuters did not reveal the potential size of stake to be sold or current valuation, but as of December 2022 BCA Life had total assets worth US$156.08 million.
BCA spokesperson Hera Haryn said that many industry players are interested in taking advantage of the country’s potential across its life market sector, which is considered one of the biggest in the region.
"In principle, BCA and its subsidiaries are always open to collaborate with strategic partners to expand our services, while supporting business growth," Haryn said.
The report is just the latest in a seeming trend across Asia featuring life insurance units. Korea Development Bank (KDB) is marking its fifth attempt to sell off its life insurance unit, KDB Life Insurance, while Tokio Marine is reportedly in the process of selling its Southeast Asian life businesses in a transaction that could be worth US$1 billion.
What are your thoughts on this story? Please feel free to share your comments below.
