Hanwha Life Completes Acquisition of Indonesia's Ribopharm... Accelerating Southeast Asia Expansion
Final Acquisition Completed on the 29th... Establishing Life and Non-Life Insurance Portfolio
Hanwha Life has acquired a mid-sized Indonesian non-life insurance company. It is expected that the market penetration in Southeast Asia will accelerate under the leadership of Dongwon Kim, Hanwha Life's Chief Global Officer (CGO), who took office earlier this year.
On the 30th, Hanwha Life announced that Hanwha Life Indonesia, together with Hanwha General Insurance, completed the acquisition of a 62.6% stake in Lippo General Insurance the day before. Hanwha Life Indonesia acquired 47.7%, and Hanwha General Insurance acquired 14.9%. The exact acquisition amount was not disclosed. Although the actual acquisition price differs from the market price, considering that Lippo General Insurance, listed on the Indonesian stock exchange, had a market capitalization of approximately 956.2 billion Indonesian Rupiah (about 83 billion KRW) as of the previous day, a significant amount of funds appears to have been invested.
Established in 1963, Lippo General Insurance is a financial subsidiary of the Lippo Group, ranked 6th in Indonesia's business circles. It is reported to be ranked 14th among 77 Indonesian non-life insurers. Based on sales of health and accident insurance, it holds the second-largest market share. It has 14 branches across Indonesia, including the capital Jakarta, and as of the end of last year, its total assets amounted to 248 billion KRW, with earned premiums of 220.6 billion KRW.
Through the acquisition of Lippo Insurance, Hanwha Life is expected to accelerate its penetration into the Indonesian insurance market by building a product portfolio that covers both life and non-life insurance. Leveraging the Lippo Group's recognition, which owns affiliates in banking, healthcare, and distribution sectors, Hanwha Life plans to expand its customer base and business areas. It aims to establish itself as a comprehensive digital-based financial company in Indonesia through partnerships with various local platforms.
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Previously, Hanwha Life entered the Indonesian life insurance market in earnest in 2013, becoming the first domestic insurer to do so by acquiring the local insurer Multico in 2012. Since then, it has been expanding personal sales channels, increasing bancassurance partnerships, and promoting various digital new businesses. The local subsidiary has already achieved three consecutive years of profitability since 2019.
Namgoong Hoon, Head of Hanwha Life Indonesia (second from left), and Eddy Harusono Handoko, CEO of Inti Anugera Pratama, a subsidiary of the Lipo Group (second from right), are posing for a commemorative photo after completing the equity acquisition deal on the 29th in Jakarta, Indonesia. (Photo by Hanwha Life)
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