Australia’s Commonwealth Bank takes over as majority owner of Indonesian life insurer Astra CMG
21 June 2007
PT Sedaya Multi Investama (SMI), a subsidiary of PT Astra International Tbk (Astra), and the Commonwealth Bank of Australia (CBA) are pleased to announce a change of ownership for their joint venture in PT Astra CMG Life. Astra has sold its share in Astra CMG Life, with CBA increasing its shareholding to 80%.
The Commonwealth Bank is partnering with local Indonesian entity PT Gala Arta Jaya, which has taken on the remaining 20% holding in PT Astra CMG Life.
Group Director of Astra’s Financial Services Division and President Commissioner of Astra CMG Life, Mr Gunawan Geniusahardja said; "Both CBA and Astra International agree that the business had reached maturity under the 50/50 joint venture ownership model and in the best interests of the business, it was proposed that either Astra International or CBA acquire the majority shareholding. Following extensive discussion and consideration, Astra International and CBA came to the decision that it would be in the best interests of Astra CMG Life that CBA acquire the majority shareholding".
"With CBA’s strong experience in banking and insurance, we are confident CBA will lead Astra CMG Life into an even more successful future," Mr. Geniusahardja said.
Head of CBA’s International Financial Services division and a Commissioner of Astra CMG Life, Mr Garry Mackrell, said, "We are pleased to be contributing to Indonesia’s strengthening financial services industry through our successful and prospering Indonesian companies, which includes Astra CMG Life".
"CBA has been operating in Indonesia for 10 years and we continue to see strong demand for integrated financial services in Indonesia’s rapidly growing middle income customer population. Our goal is to provide Indonesians with a comprehensive range of financial and insurance products and services, supported by our expanding network of operations and branches," Mr Mackrell said.
CBA would like to thank Astra International for their partnership during the past 10 years and its valuable contribution in growing Astra CMG Life to the successful company it is today.
The Commonwealth Bank is one of the top five companies as listed on the Australian Stock Exchange. CBA has 95 years of experience in financial services and is one of the most recognized and respected companies in Australia. CBA’s three key insurance brands are ‘CommInsure’ in Australia, ‘Sovereign’ in New Zealand and ‘Colonial’ in Fiji. All three are the number one life insurer in their respective countries.
For more information, please contact:
Commonwealth Bank of Australia
Telephone: (+612) 9378 2663
Handphone: (+612) 414 789 649
Dekih Sofyan Budiman
Telephone: (+62-21) 2500350
Handphone: (+62) 816933185
PT Astra International Tbk
Telephone: (+62-21) 652 2555
Handphone: (+62) 816 751 335