Insurance
CBA mulls sale of Indonesian life business

Commonwealth Bank will potentially offload its Indonesian life insurance business as part of a strategic review.

The bank announced it is undertaking a strategic review of PT Commonwealth Life (PTCL) and has engaged external advisers to weigh the possibility of selling its 80% stake in the business.

Headquartered in Jakarta, PTCL was established in 1992 and serves more than 400,000 individual and group customers.

As at December 2016, PTCL held about $654 million in total assets, making about $29 million in profit for the year.

The move follows CBA's decision to offload its Australia and New Zealand life business to AIA Group in September last year.

The $3.8 billion sale of CommInsure Life and Sovereign included a 20-year bancassurance partnership with AIA for the provision of life insurance products. However, the CommInsure brand will remain with CBA as the sale did not include its general insurance capabilities.

At the time CBA announced it was also exploring options for its equity stake in China's BoComm Life Insurance which it acquired by way of a joint venture in 2010 with the nation's Bank of Communications.

Read more: CBAlife insurancePTCLCommInsureCommonwealth BankAIA GroupBank of CommunicationsBoComm Life InsurancePT Commonwealth Life
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