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Sun Life to spend $40M in Indonesia
Publication Date : 04-05-2014
Canada-based life insurer Sun Life Financial plans to invest US$40 million in three years in its local unit, PT Sun Life Financial Indonesia (SLFI), to accelerate the firm’s success in the world’s fourth most populous nation.
Sun Life Financial Asia president Kevin Strain said during his recent visit to Jakarta that the investment was the most his firm would spend on organic expansion in the Asian market.
“What we see in Indonesia is that there’s a real opportunity for growth right now and if we miss the window for the next three or five years, we will have missed the opportunity,” he said.
Kevin said that although Indonesia currently contributed less than 1 per cent of the firm’s global premium income of $125 billion last year, the country had become a significant market as SLFI recorded the fastest growth compared to other subsidiaries across Asia, namely those in the Philippines, Hong Kong, Malaysia and Vietnam.
SLFI president director Bert Paterson said that his firm had booked 74 per cent growth in premium income in the first quarter this year from its total premium income last year.
SLFI’s premium income grew 13 per cent to 855 billion rupiah ($74 million) last year from 755 billion rupiah the previous year.
Bert said that SLFI’s premium growth outperformed the market’s average premium growth, which stood at around 8 per cent last year.
The firm successfully quadrupled its profit to 264 billion rupiah last year from 55 billion rupiah in 2012, he added.
“In overall business, we grew 32 per cent last year. We were the fastest growing company,” he said.
Kevin said that to capture a bigger chunk of Indonesia’s growing insurance market, Sun Life would particularly use the allocated investment on people as well as technology and branding.
He said that his firm had targeted to increase its number of agents to 15,000 in three years from the current 7,164.
“We aim to have the most respected agents in the country, those who are well-trained and can deliver strong advise and good services to customers,” he said, adding that SLFI would launch new development or training centers in Medan, Surabaya and Jakarta.
Kevin said that Sun Life aimed to be among the top-five players in the country.
SLFI currently ranks 12th or 13th in insurance market share in the country.