The move follows the Financial Services Authority’s (OJK) revocation of AGI’s business permit on February 17, in preparation for the merger, the Jakarta Post reported. Following the merger, the France-headquartered insurance giant now operates four subsidiaries in Indonesia – MAGI, two health insurance providers, and an asset management firm.
In 2017, AXA performed a similar merger for its life insurance operations in Indonesia.
According to MAGI compliance director Benny Waworuntu, “returning AGI’s business permit is the final administrative step in the merger of MAGI and AGI.” He added that the merger will allow it to improve its services and reach a greater number of customers in Southeast Asia’s largest country, in terms of both population and land area.
AXA Indonesia is restructuring in order to focus on areas with “greater opportunity” in the general insurance market, such as marine, health, and lifestyle protection, the report said.
The OJK gave its approval to the MAGI-AGI merger in November 2019, with the companies launching the combination process the following month. The companies have assured its clients that all existing AGI policies remain valid after the merger, until their indicated expiration dates.
