Allen & Overy advises Dai-ichi Life Insurance on PT Panin Life acquisition

Allen & Overy is advising the Dai-ichi Life Insurance Company on its IDR3.3tn (approximately £225m) acquisition of a 40 per cent stake in PT Panin Life of Indonesia.

The strategic joint venture encompasses a long-term exclusive bancassurance agreement between Panin Life and PT Bank Pan Indonesia.

Dai-ichi, the only listed company among Japan’s big-four life insurers, was the successful bidder in an auction process for the stake in Panin Life. The deal was announced on 4 June. Completion of the acquisition and the commencement of the bancassurance business are expected within the next three to six months, following regulatory approval.

Under the terms of the agreement, Dai-ichi will hold a five per cent equity stake in Panin Life by acquiring newly issued shares. It will also subscribe for 36.842 per cent of the shares in PT Panin Internasional, Panin Life’s immediate holding company. The transaction forms part of Dai-ichi’s broader strategy to enhance its overseas life insurance operations in the Asia-Pacific region, following the expansion of its business into Vietnam, India, Thailand and Australia.

Singapore corporate partner Chris Moore is leading the Allen & Overy team with support from senior associate James Mythen and associate Maurice Simon.

Other law firms with a significant role in the transaction include Hibiya Nakata, Japanese legal adviser to Dai-ichi; Makes & Partners, Indonesian legal adviser to Panin Group; and Soewito Suhardiman Eddymurthy Kardono, Indonesian legal adviser to Dai-ichi.