Hanwha Life Insurance Co. will invest heavily in Indonesia to expand its presence in the South East Asian market. The Korea’s second largest life insurer announced on Thursday that it will spend 150 billion won ($132 million) to further penetrate the Indonesian market which the company considers as the second gateway after Vietnam to the South East Asian market. It invested 40 billion won to become the first Korean insurer to make its debut in Indonesia in October 2013.
The company has spent around 100 billion won in total in Hanwha Life Insurance Co. (Vietnam), better known as Hanwha Life Vietnam since it entered the Vietnamese market in 2009.
An official from the company said that the company has found the Indonesian market, expected to grow an average of 10 percent annually, very promising. Hanwha Life Vietnam generated its first quarterly profit during the January to March period this year and ranked 8th among the 17 life insurers in the country by revenue.
Among the 150 billion won the company plans to invest in the Indonesian market, 80 billion won would be spent on broadening sales network and purchasing Indonesian sovereign bonds. The company plans to increase the number of sales agents of Hanwha Life Insurance Indonesia from the current 1,200 to 12,000 and that of outlets from 10 to 44 by 2025.
The company also aims to reach the break-even point as early as possible by seeking stability and profitability through purchase of Indonesian sovereign bonds that are estimated to yield 7 percent return per annum. Hanwha Life Indonesia recorded about 6.5 billion won is revenue from January to May this year.
It also seeks to expand bancassurance partnership. Hanwha Life Indonesia signed a memorandum of understanding with Bank KEB Hana Indonesia in November last year and with Bank Woori Saudara in June this year. It mulls cooperating with other banks in the country.
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