Bank Negara Indonesia to sell stakes in BNI Life Insurance

Auction may be done after mid February.

According to Maybank Kim Eng, BNI is planning to sell stakes in BNI Life Insurance and the exclusive right to sell insurance products across its network. As of 9M12 BNI network comprised 1,555 outlets. The auction is expected to be done after mid February. BNI has hired BNP Paribas, Bahana, and Danareksa to advise on the sale.

Here's more from Maybank Kim Eng:

Value of the deal remains unclear, but the bank previously hinted that it would keep  majority stakes in the insurance arm. Currently BNI holds 91.52% ownership, and the remaining owned by YDD Swadharma (4.82%), YKP BNI (3.38%), and YKK Jiwasraya (0.28%).

By 9M12 BNI raise IDR794b non-interest income from insurance premium, 13.8% of its total IDR5.75t non-interest income. And future partnering is expected to increase sales by broadening the insurance product range.