According to Korean media reports, the firm will use KRW80bn to develop distribution channels, which will see Hanwha more branches across Indonesia. It hopes to increase the number of branches from 10 to 44 over the next decade.
The insurer originally invested KRW40bn in 2013 to become the first Korean insurer to operate in Indonesia, the largest life insurance market in southeast Asia, which is expected to grow at a rate of 10% until 2020.
Hanwha’s Indonesian unit recorded premium income of KRW6.5bn at of the end of May, with an official from the company describing the market there as “very promising”.
The insurer also said it plans to grow the number of sales agents of Hanwha Life Insurance Indonesia from the current 1,200 to 12,000, by pursuing more bancassurance arrangements.
“The future of Korea’s insurance industry, which has reached a saturation point, depends on readiness to dominate the promising overseas market in advance,” a Hanwha Life executive said.
Hanwha Life said it will buy Indonesia’s long-term government bonds - with an expected yield return of over 7% - as part of its strategy to increase bond portfolio’s returns and break even as soon as possible.
The company also has operations in Vietnam, after spending KRW100bn to set up Hanwha Life Vietnam in 2009.