PT BNI Life Insurance, or BNI Life, aims for premium income from its Sharia Business Unit (SBU) to reach IDR 689 billion this year. As of June, more than half of this target has been achieved.

Arry Herwindo, GM of Corporate Secretary, Legal, and Corporate Communications at BNI Life, stated that the company will proceed with the spin-off as per the regulations set by the Financial Services Authority (OJK). The company has been exploring the mechanisms that will be used for the spin-off.

"BNI Life's Sharia unit premium income as of June 2024 was IDR 407 billion," he told Kontan on Tuesday (23/7).

To achieve the target, Arry mentioned that the company will implement several strategies, one of which includes optimizing bancassurance partnerships with partners.

For your information, the OJK has set a deadline for the separation or spin-off of Sharia Business Units (SBU) by December 31, 2026. The regulations are outlined in OJK Regulation (POJK) Number 11 of 2023, which was issued on July 11, 2023.

If the company ultimately fails to complete the spin-off by the deadline, the OJK will revoke the company's Sharia unit license, and the company must fulfill all obligations to policyholders. The settlement of these obligations must be done with the approval of the policyholders and must not harm the rights of the policyholders.