Indonesia's Bank Rakyat may buy life insurer Jiwasraya

JAKARTA Tue Aug 19, 2014 5:16am EDT

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JAKARTA Aug 19 (Reuters) - PT Bank Rakyat Indonesia Tbk (BRI) said on Tuesday it is exploring a potential acquisition of state-owned Indonesian life insurer PT Asuransi Jiwasraya.

Bank Rakyat is at an early stage of reviewing the potential acquisition, the state-controlled lender said in a stock exchange filing.

Bank Rakyat said in January it had earmarked 3 trillion rupiah ($256.9 million) for possible acquisitions of other lenders as well as insurance and securities firms.

Jiwasraya posted a 69 percent jump in net profit to 460.9 billion rupiah in 2013 from a year earlier, according to its annual report.

Indonesia's life insurance sector has seen a spate of acquisitions in the past one to two years as companies seek to capitalize on the low coverage and attractive growth rates in Southeast Asia's largest economy.

Britain's Aviva is partnering Indonesian conglomerate PT Astra International Tbk to sell life insurance products, while Japan's Sumitomo Life Insurance Co and Dai-ichi Life Insurance Co Ltd have bought stakes in Indonesian insurers.

($1 = 11,677.00 rupiah) (Reporting by Eveline Danubrata; Editing by Matt Driskill)

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