Top of the page.
Skip the menu to main contents.

Header menu starts here.
Skip the Header menu to Main menu.

Main menu starts here.
Skip the Main menu to current location in your website.

Current location in your website.
Skip to main contents.

Press Releases

Indonesian Insurer “PT Asuransi Jiwa Sinarmas MSIG” Commences Operations

August 18, 2011

Mitsui Sumitomo Insurance Co., Ltd.

1.Overview of Sinar Mas Group and Sinarmas Life

The Sinar Mas Group is one of Indonesia's largest conglomerates, doing business in finance, insurance, pulp and paper, agriculture, foods and real estate.

The life insurance business, like non-life insurance and banking, is a core business under the Group's financial holding company Sinar Mas Multiartha, and premiums written at Sinarmas Life rank that company second out of 45 Indonesian life insurance companies (FY2010), making it an industry leader.

With its powerful brand in the Indonesian market and its outstanding business model, it has achieved top line growth and strong profitability. Premium income was approximately 89.1 billion Japanese yen in FY2010, with net profit of approximately 5.2 billion Japanese yen.

Its diverse sales channels are mainly through bancassurance and sales agents but also include direct sales, among others. Sales of a wide range of products suited to customer needs have given it high growth and profitability.

(Reference) Overview of Sinarmas Life

Established in 1985
Life insurance premiums written Approx. JPY 89.1 billion (FY2010)
Net income Approx. JPY 5.2 billion (FY2010)
Total assets Approx. JPY 109.9 billion (FY2010)
Net assets Approx. JPY 14.4 billion (FY2010)
ROE 36% (FY2010)
Employees 591 (December 2010)
  • *Japanese yen amounts assuming an exchange rate of 1 Indonesian rupiah = 0.0096 Japanese yen.

2.The Indonesian Life Insurance Market

While Indonesia has a population of about 240 million (the fourth largest population globally), the ratio of life insurance premiums to GDP has remained 1 to 2% (cf. 7.2% in the Japanese market). The country's real GDP has been growing steadily at over 5% in the past five years, however, and the middle class—representing about 40% of the population—is expected to further require life insurance products, and therefore the Indonesian life insurance market is expected to grow rapidly going forward.

Indonesia also has the largest Muslim population in the world and is expected to be a promising market for Takaful insurance (a quasi-insurance system of the Islamic world based on mutual assistance).

3.MSI's Asia Strategy

MSI plans to proactively invest in non-life and life insurance businesses outside Japan as one strategy for sustained growth. MSI has strategically focused on the fast-growing Asian market as a target of life insurance business investment in particular. We have steadily advanced our business in the region by joining in equity participation in the Chinese life insurer Sinatay Life Insurance Co., Ltd. in April 2010, followed by an investment in Malaysian life insurer Hong Leong Assurance Berhad in October 2010.

We also entered the Takaful market in April 2011 by completing an investment in the Takaful company of Malaysia's Hong Leong Group. MSI will continue to step up the pace of our initiatives to further our business platform.

- End -

E-mail Distribution

Subscribers will be notified via E-mail when we update website for our latest news release.

RSS Distribution

Distributes our latest news release in RSS format.

Go to page top
Footer starts here.
Pages ends here.
Move to top of the page.