Mandiri AXA General Insurance established

The joint venture operation sees AXA Asia and Bank Mandiri own 40 per cent and 60 per cent, respectively, with a paid-up capital of US$11.3 million (100 billion rupiah).

Mandiri AXA General Insurance will leverage the strength of the existing AXA Mandiri brand, promoting general insurance products to customers of the Mandiri Group, while introducing AXA’s general insurance expertise and innovation to the market.

Currently, the general insurance penetration rate in Indonesia is only 0.4 per cent, compared with other countries in Southeast Asia which are in the range of 1.6 per cent. The gross premium of general insurance in Indonesia was only US$2.6 billion in 2009, and it is projected to grow by 22 per cent annually until it reaches US$7.12 billion in 2014.

Mike Bishop, chief executive officer of AXA Asia, said, “We are pleased to have achieved this milestone and look forward to further strengthening the position of AXA Mandiri in Indonesia. Our partnership with Bank Mandiri has been very successful since we formed AXA Mandiri Financial Services in 2003."

AXA Mandiri Financial Services is a life insurance bancassurance business, with 40 per cent of market share. Its first half 2011 total premiums stood at US$271.2 million and net profit was US$39.98 million.