Rescue plan for Indonesian life insurer collapses

March 19 2018 by InsuranceAsia News Staff

A proposal for Evergreen Invesco to rescue embattled Indonesian life insurer Bumiputera has failed after the parties could not agree on the size of the capital injection.

Evergreen was reportedly due to acquire the holding company for Bumiputera, which has more liabilities than assets, and is presently controlled by Indonesia’s Financial Services Authority (OJK).

Evergreen was reported to be raising billions of dollars through a rights issue. It had intended to inject capital in stages into the planned holding company over a period of 14 years, according to Bumiputera manager Adhie Massardi.

The life insurance firm had wanted a sizeable amount of funds immediately, he added.

Indonesian financial authorities have been eager to resolve Bumiputera’s future without government funds, given the hostile public furore that erupted over a taxpayer bailout of lender Bank Century in 2008.

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