Insurers eyeing snapping up of controlling stake of BNI life unit

The lender is mulling selling 60% of its stake in PT BNI Life Insurance.

Several insurers are eyeing to take a controlling stake in PT Bank Negara Indonesia’s life insurance business, a report by Bloomberg said.

According to the report, industry giants such as Prudential and Singapore Life Holdings are just a few insurance firms considering bidding for the controlling stake in PT BNI Life Insurance.

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Sources also revealed that Jakarta-based conglomerate PT Astra International has also expressed interest in the deal, although all deliberations are still in their preliminary stage and a formal sale has yet to begin, informants familiar with the matter revealed. 

As early as July this year, the state-owned lender discussed selling its 60% stake in PT BNI Life Insurance with advisers as a strategic option. A deal could include a bancassurance partnership, which would permit an insurance company to sell its products in a bank’s branches