Seoul-based HanwhaLife Insurance Co. Ltd. will invest 150 billion won in unit ,as it seeks to further expand into the Indonesian insurance market.
Under the plan, Hanwha Life will spend 80 billion won tohire more sales staff and set up more branches in the country. The insurer saidJuly 21 that it will increase its sales workforce in Indonesia to 12,000 and open34 new branches by 2025. The company currently has 10 branches.
As of March 31, Hanwha's Indonesian unit had around 20billion won in equity capital, a Hanwha Life spokeswoman told S&P GlobalMarket Intelligence. The South Korean insurer Indonesia in December 2012 andhas invested an aggregate 40 billion won, she said.
Meanwhile, the company will look to build up partnershipswith local banks to widen its bancassurance channels, the most dominant saleschannel in Indonesia. Hanwha Life is currently selling its products inIndonesia via branches of banking units of South Korea's and .
Further, Hanwha Life plans to purchase long-term Indonesiantreasury bonds as they offer annual returns of up to 7% to buyers."Through the plan, we expect that the unit will evolve as a netprofit-producing-company," the spokeswoman said.
The remaining 70 billion won will be kept in the books ofthe Indonesian unit to help it raise its equity capital, the spokeswoman added.
As of July 20, US$1was equivalent to 1,141.58 SouthKorean won.