Two insurance firm under French’ AXA Group, PT Mandiri AXA General Insurance (MAGI) and PT Asuransi AXA Indonesia (AGI) officially merged, after obtaining permission from the Financial Services Authority. The merger was effective on Dec. 1, 2019.
Julien Steimer, president commissioner of MAGI said, after merged, both companies will operate under Mandiri AXA General Insurance. As reported, last August, Bank Mandiri (BMRI) has sold 40 percent of MAGI to AXA Asia.
The director of the state-owned lender, Hery Gunardi said, after sell part of MAGI shares, the company will continue to release all general insurance company next year. After the share sale, the lender will hold 20 percent shares of MAGI And its partner AXA Asia has 80 percent shares.
Beside having general insurance affiliated company with AXA Group, the bank also has a life insurance company PT AXA Mandiri Financial Services. By removing the entire stake in MAGI, Bank Mandiri will strengthen its business line on life insurance, said the director.
To meet the Provisions of the Insurance Act Number 40 of 2014, AXA Financial Indonesia closed PT AXA Life Indonesia’ business. It was done after two insurance companies from AXA Group, namely PT AXA Financial Indonesia and AXA Life had merged. The company operates under the name AXA Financial Indonesia with all of AXA Life assets and their liabilities were transferred to AXA Financial.