Indonesia to Disband Oldest Life Insurer After $2.4 Billion Deal

The Indonesian government will disband troubled state insurer PT Asuransi Jiwasraya in September after clinching a deal with policyholders, according to a government official.

The country’s oldest insurer reached a deal with 99.7% of policyholders to transfer their policies to insurance holding firm PT Asuransi Jiwa IFG, said Arya Sinulingga, a special staff at State-Owned Enterprises Ministry, by a text message on Friday. “This is the biggest restructuring ever in the history of Indonesia’s insurance industry,” he said.

The transfered policies were valued at 38 trillion rupiah ($2.4 billion), local news outlet Antara reported, citing a Financial Services Authority ...