Prudential to fight bankruptcy decision<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
PT Prudential Life Insurance, the Indonesian unit of British
\nPrudential Plc, vowed that it would appeal the Jakarta Commercial
\nCourt's decision to accept the bankruptcy petition against the
\nInsurance giant.<\/p>\n
The court will hear the case based on a petition filed by one
\nof Prudential's former agents.<\/p>\n
In a press statement on Friday, Prudential president Charlie
\nE. Oropeza said the company would appeal to the Supreme Court
\nover the court's decision, and that it wanted to reassure its
\ncustomers that they would in no way be affected.<\/p>\n
\"We are surprised by the court's decision ... The petition,
\nwhich is from a disgruntled former consultant, is wholly without
\nmerit,\" said Oropeza.<\/p>\n
Former Prudential agent Lee Boo Siong filed a bankruptcy suit
\nwith the Commercial Court in Central Jakarta against the company
\non April 7 accusing the company of failure to pay him bonuses
\namounting to some Rp 10 billion (US$1.17 million).<\/p>\n
However, despite the company's strong performance, and its
\nability to pay off its claims, the court has surprisingly decided
\nto go ahead with bankruptcy hearings based on Lee's petition.<\/p>\n
Prudential's total premium income grew by 114 percent to Rp 1
\ntrillion in 2003 compared to Rp 477 billion in 2002. Its profit
\nbefore tax in 2003 was Rp 71 billion, which marked its third
\nconsecutive year that it had made a net profit.<\/p>\n
Prudential had a 255 percent Risk Based Capital (RBC) rate
\nlast year (compared to the minimum requirement of 100 percent),
\nand a 110 percent liquidity rate. Both RBC and liquidity rate are
\nindices used by the Ministry of Finance to determine the fiscal
\nhealth of an insurance company. The higher the rate, the better.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/prudential-to-fight-bankruptcy-decision-1447893297",
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"sponsor": "Okusi Associates",
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