Indonesia: Two reinsurers merged in first phase to build globally competitive player
Source: Asia Insurance Review | Feb 2016
The government has combined two state-owned reinsurance companies, Reasuransi Umum Indonesia and Reasuransi Indonesia Utama, as it moves to create a big national reinsurer which will be globally competitive. The merged company, named Indonesia-Re, aims too to stem reinsurance business flowing out of the country.
Following the merger, Indonesia-Re will consolidate its business lines and improve reinsurance services with information technology. It will manage two subsidiaries: Asuransi Asei Indonesia and Reindo Syariah.
President-Director of Indonesia-Re, Dr Frans Sahusilawane, said Indonesia-Re is expected to collect IDR5 trillion (US$360 million) in premiums this year with net profit estimated at IDR1 trillion, reported Tempo. For 2015, the combined premiums of the two companies are estimated at around IDR2.5 trillion with net profit of IDR500 billion, he said.
Minister for State Enterprises, Ms Rini Soemarno, said that the next phase scheduled in 2017 is to merge Nasional Indonesia Reasuransi into Indonesia-Re.
Financial Sectors Deputy Minister, Mr Gatot Trihargo, said that Indonesia-Re has a capital of IDR1.5 trillion, that is targeted to reach IDR10 trillion by 2018 with funds raised from several local insurers.