The state-owned insurance and guarantee holding companyIndonesia Financial Group (IFG) plans to boost inorganic growth this year, with one measure being the establishment of IFG Life, an insurance company that will focus on life and health insurance services.
IFG Life, which is scheduled to start operations this month, will accept insurance policy migration from customers of the financially stricken Asuransi Jiwasraya which had suffered from poor investment decisions.
The government has approved funds of IDR22tn ($1.58bn) for the establishment of IFG Life as a new member of the insurance holding company. The management, which has set strict business standards, is increasingly optimistic that IFG Life can develop into the largest life and health insurance company in Indonesia.
IFG business director Mr Pantro Silitonga said, “We are also optimistic that IFG Life will be accepted by the public as a new insurance company with products that are safe, profitable, with quality services.”
Mr Pantro said that currently, IFG Life’s management is waiting for decisions and business permits, product permits, and portfolio transfer permits from the Financial Services Authority (OJK).
He added that the management would also implement safe standards in the company’s investment management system, and use the latest information technology when running the company’s business.
In addition to the IDR22tn, IFG is also preparing other funds to develop IFG Life’s business, so that the total funds prepared for IFG Life would reach IDR26.7tn.
A holding company, IFG has nine subsidiaries that focus on financial products and the capital markets, general insurance, and life and health insurance. IFG’s current subsidiaries include Jasa Raharja, Indonesian Credit Guarantee (Jamkrindo), Indonesian Credit Insurance (Askrindo), Asuransi Jasa Indonesia (Jasindo), Graha Niaga Tata Utama, Bahana TCW Investment Management, Bahana Sekuritas, Bahana Artha Ventura, and Bahana Kapital Investa.