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tate-owned Bank Mandiri will complete its full acquisition of life insurance firm PT Asuransi Jiwa InHealth Indonesia (Mandiri InHealth) in the near future, according to an executive of the life insurer.

'€œBank Mandiri will probably complete the acquisition of Mandiri InHealth some time in the next week, so that the bank will increase its shares from 60 to 80 percent in our company,'€ Dikdik Yustandi, chief marketing and distribution officer at Mandiri InHealth, said over the weekend.

Dikdik said the acquisition was initially expected to be completed at the end of last year, but it had been postponed because the Financial Services Authority (OJK) had not issued a permit at that time.

On Dec. 24, 2013, Bank Mandiri'€™s shareholders agreed to acquire an 80 percent stake worth Rp 1.75 trillion (US$135.06 million) in InHealth, which was previously owned by state-owned health insurance company Askes before it was required to divest its stake in its subsidiary before it became the non-profit Health Care and Social Security Agency (BPJS Kesehatan).

The acquisition agreement was a follow up to the signing of a conditional share purchase agreement (CSPA) between state-owned firms Bank Mandiri, pharmaceutical firm Kimia Farma and general insurance company Asuransi Jasa Indonesia (Jasindo) as well as the-then Askes and Koperasi Bhakti Askes.

With the initial acquisition, Bank Mandiri controls 60 percent of InHealth and will rebrand the company into Mandiri InHealth. Kimia Farma and Jasindo each own 10 percent while the remaining 20 percent still belongs to BPJS Kesehatan until Mandiri acquires it.

According to the agreement, Bank Mandiri spent Rp 1.05 trillion on the acquisition, while Kimia Farma and Jasindo each spent Rp 175 billion.

Bank Mandiri will spend another Rp 350 billion to acquire the remaining shares currently held by BPJS Kesehatan, giving the lender 80 percent ownership of Mandiri InHealth.

As the acquisition will soon be completed, Dikdik said Mandiri Inhealth expected to increase its premium revenue growth to Rp 2.6 trillion this year from Rp 1.4 trillion as of 2014.

The company, the business of which is more than 65 percent in health insurance, set a high growth target in view of the full implementation of the national health insurance program (JKN) by BPJS Kesehatan, which has the same coverage scheme called '€œmanaged care'€.

'€œOur health insurance is more concentrated on group customers through employee benefits. This year, we are aiming to approach more state-owned and private companies, either publicly listed or not, because the market is huge,'€ Dikdik said.

Despite being a major player in health insurance, Dikdik said Mandiri InHealth was also preparing to boost its non-health business, especially credit life insurance, which was expected to increase by 30 percent to Rp 200 billion this year.

The company'€™s partnership with Bank Mandiri in product cross-selling will contribute 80 percent of the targeted non-health premium amount this year, according to Stenly Paseki, assistant vice president and head of the non-health department at Mandiri InHealth.

Last Monday, Mandiri InHealth signed an agreement with mid-size lender Bank Bukopin to offer credit life insurance products for the latter'€™s customers in micro, consumer and business banking segments.

'€œWe hope we can cover 25 percent of Bank Bukopin'€™s total loan portfolios in the future, even though it will grow gradually,'€ Dikdik said.