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Maybank's Etiqa Mulls Bid For Indonesian Insurer - Reports

Vanessa Doctor Asia Correspondent 4 December 2013

Maybank's Etiqa Mulls Bid For Indonesian Insurer - Reports

Maybank insurance arm Etiqa is reportedly considering a takeover bid for an Indonesian firm.

Etiqa, the insurance arm of Malaysian banking giant Maybank, is mulling a takeover bid for Indonesian insurer PT Mega Life Asuransi Jiwa, according to several media.  

The news comes at a time insurance companies are becoming increasingly active in asset and wealth management, in a bid to maximise investment return for clients and build positive risk profiles.

Without naming sources as talks are still private, the Malay Mail Online reported that shareholders at Mega Life, PT Sinar Mas Multiartha and CT Corp, all part-owners of the Indonesian firm, are looking to sell as much as 80 per cent of the company. This is said to be worth around $200 million to $300 million. 

In a statement sent to Bloomberg, Etiqa chief executive Kamaludin Ahmad said that Indonesia is an area of interest for the company, without commenting on whether talks are taking place. The three firms named in the sale were not available for comment as of this writing. 

Etiqa records some MYR28 billion ($8.7 billion) in assets as at September 2013 and distributes products through 30 insurance branches and more than 450 Maybank branches.

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