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Ailing Bumiputera committed to settling liabilities
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Rescue mission: Asuransi Jiwa Bersama Bumiputera 1912 statutory management coordinator Didi Achdijat (second right) and statutory managers Yusman (left), Sriyanto Muntasram (second left) and Adhie Massardi prepare to take questions in a press conference on Dec. 28. (JP/Anton Hermansyah)
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suransi Jiwa Bersama Bumiputera 1912, the country’s oldest insurance company, has maintained its commitment to settle all liabilities with policy holders amid efforts to introduce management restructuring.
Bumiputera has been suffering from financial difficulties resulting from mounting liabilities and claim payments, higher than its own assets and premium revenues.
The insurer’s capital stands at Rp 11.3 trillion (US$840.34 million), while its total liabilities were around Rp 29 trillion in 2015, which came from 6.5 million policy holders.
(Read also: Tycoon to inject Rp 2t in fresh capital into ailing Bumiputera)
Bumiputera statutory management coordinator Didi Achdijat said that the insurer would finance the payment from three sources, namely premium payment from existing policy holders, profit sharing with its newly established subsidiary PT Bumiputera Life Insurance (BLI) and asset sales.
"We can expect to book Rp 2.7 trillion in annual premium income next year,” Didi said Wednesday in a press conference.
Didi said BLI would continue the Bumiputera brand in the insurance business while its parent company would no longer issue new policies.
Didi said Bumiputera currently had Rp 5.1 trillion worth of financial assets in the form of stocks and bonds and Rp 3.2 trillion worth of property assets. (hwa)
