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Great Eastern completes sale of US$1.4m minority stake in Indonesia insurance firm

INSURER Great Eastern (GE) has sold 5 per cent of its stake in PT QBE General Insurance Indonesia, which it acquired in 2018. It will continue to hold the remaining 95 per cent, GE said on Friday.

The insurer, which is majority-owned by Singapore lender OCBC Bank, had earlier announced it had agreed to sell the Indonesia-registered firm to PT Suryasono Sentosa for some US$1.4 million back in January this year. In December 2018, GE explained that this was being done to satisfy Indonesian shareholding requirements.

Khor Hock Seng, group CEO of Great Eastern Holdings, said in an announcement on Friday that Indonesia is a growth engine for the group and presents exciting opportunities.

"Together with our life subsidiary PT Great Eastern Life Indonesia and our partners, including Bank OCBC NISP, we look forward to providing a comprehensive suite of both general and life insurance solutions to better serve the needs of the business community and consumers in Indonesia," he added.

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Great Eastern had earlier bought QBE Indonesia for US$28 million as part of its broader strategy of building its general insurance operations into a significant business pillar and deepening its footprint in Indonesia.

Great Eastern shares were trading at S$26.03, up eight Singapore cents as at 1.02pm on Friday. Meanwhile, OCBC shares were trading at S$12, down 14 cents at the same time.