A consortium at the rescue of a one-hundred-year-old insurer
A consortium led by the businessman and president of football club Inter Milano, Erick Thohir, is willing to invest approximately 149 million USD in a subsidiary of the Indonesian life insurer Asuransi Jiwa Bersama Bumiputera 1912 (AJBB). This financial transaction is due to be finalized in March 2017.
The subsidiary, sustaining difficulties, will be marketing new insurance products whereas AJBB, also struggling, will continue until extinction to honor its commitments toward the 6.7 million policyholders currently available.
The authorities are hoping to bail out the century-old insurer without having to involve tax payers. Thus, they resorted to a strategic partner and to an Indonesian company specialized in the textile trade Evergreen Invesco, another stakeholder in the bail-out project. AJBB liabilities amount to nearly 20 billion IDR (1.48 million USD) whereas its assets are below 14 billion IDR (1.04 million USD).
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