Wednesday, 27. January 2010
DEG participates in Indonesian life assurance company
- DEG acquires 23 per cent of the shares of PT Avrist Assurance
- Promotion of insurance sector as a strategic business field of DEG
DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH
takes a 23-per cent participation in PT Avrist Assurance (Avrist),
a company offering life assurances. Avrist was founded in 1975 by
Harry Diah, an Indonesian insurance specialist. From 1984 to
October 2009, 60 per cent of the company belonged to the American
Insurance Group (AIG). With its participation, DEG, one of Europe’s
largest development finance institutions, strengthens the equity
basis of the company and, on top of this, sets a signal for further
providers of capital. “With the investment we are seeking to
support Avrist in its future growth as an independent company
committed to international standards in the insurance industry”,
said Holger Rothenbusch, Senior Vice President Structured Finance
of DEG on the occasion of the signing ceremony. DEG is member of
KfW Bankengruppe (KfW banking group) which enjoys with a triple-A
rating the highest credit rating of the agencies Fitch Ratings,
Moody’s and Standard & Poor’s.
With its new autonomy, Avrist is able to both position itself as an
independent life assurance company and implement new strategies.
The company has already started to establish additional
distribution channels in cooperation with banks with a view to
opening up rural regions. New products also address low-income
groups and small and medium-sized enterprises. For its employees
Avrist offers a great number of training measures.
Everyday risks are rather difficult to cope with for people in
developing and emerging-market countries. Governmental and private
insurance systems frequently only provide limited security. For the
sustainable development of a country, insurance companies are,
however, indispensable. Life assurances make an important
contribution to protection against poverty. They provide families
with financial coverage in case of death, protect against poverty
in old age and cover the education costs of surviving orphans. As
one of Europe’s biggest development finance institutions, DEG
considers it its task to commit itself as a lender and a
“signalling” institution as well as a promoter of standards in the
insurance sector.
DEG’s first commitment in Indonesia was in 1972. Since 2003, it has
run a representative office in the country. In total, DEG has to
date provided around 500 million euros for over 80 projects in
Indonesia. As a reliable partner DEG offers customised financing
and advisory services in all stages of the projects.
Attached please find a Pdf-File for downloading.
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