JAKARTA. PT MSIG Life Insurance Indonesia Tbk (LIFE), a life insurance company, will initiate a spin-off of its sharia business unit.

Leony Samosir, Corporate Secretary of LIFE, said that the plan had been approved by Financial Services Authority (OJK) on July 5, 2024.

"For next, the company will apply for business license for a new sharia life insurance company, and following all processes according to OJK regulations," added Samosir in the official disclosure in Indonesia Stock Exchange (IDX).

After the business license was obtained, the entire portfolio of sharia-insured listed under LIFE will be transferred and managed by the new sharia insurance company. "This sharia unit spin-off is targeted for completion at the end of third quarter of 2026," said Samosir.

It is worth mentioning that during the spin-off process, rights and obligations of insured and the company remain unchanged and to be carried out according to the existing policy. Users of LIFE's sharia insurance will still receive protection benefits and services based on the applicable regulation. 

"After the sharia portfolio is transferred to the new sharia company establish by the company, then the liabilitkes over the insured will be the responsibility of said new company," added Samosir. (KR/ZH)