(Bloomberg) -- Prudential Plc has entered into a long-term strategic bancassurance partnership with Indonesia’s largest Islamic lender PT Bank Syariah Indonesia Tbk.
As part of the agreement, Prudential will become the Syariah Life insurance provider of the bank known as BSI from early 2025, according to a statement on Friday, which confirmed an earlier report from Bloomberg News. BSI will sell, promote, distribute and refer the insurer’s products to its customers, it said.
While the statement didn’t disclose financial terms of the deal, Bloomberg News earlier reported that the transaction could be worth a few hundred million dollars.
The partnership will help Prudential further expand its Indonesian business, increasing the insurer’s presence in the fast-growing bancassurance market while boosting its exposure to the under-penetrated Syariah segment, the statement said.
BSI shares have jumped about 76% this year, valuing the Jakarta-listed bank at $9.3 billion. Prudential’s HK-listed shares have lost about 16% this year, valuing the firm at $25.5 billion.
Prudential’s Indonesian unit was established in 1995 and offers services including health and life insurance, education and sharia products, according to its website.
BSI was set up in 2021 after the merger between PT Bank BRIsyariah Tbk, PT Bank Syariah Mandiri and PT Bank BNI Syariah, which created the biggest Islamic bank in Indonesia by assets, its website showed. It counts more than 20 million customers and over 1,000 bank branches across the nation.
(Updates with confirmation from Prudential starting in first paragraph.)
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