Prudential unit raises capital

JAKARTA (JP): PT Prudential BancBali Life Assurance has received an additional Rp 21 billion in capital from its parent company, the London-based Prudential, raising its paid-up capital to Rp 61 billion ($6.8 million).

Prudential BancBali president Ed Navarro said the additional fund had enlarged Prudential's equity in the company to 88 percent from the previous 80 percent, according to a statement received on Saturday.

It also increased Prudential BancBali's risk-based capital to 160 percent at the end of June, well above the government-set minimum of 15 percent, the newly appointed president said.

Prudential BancBali expects a significant increase of total premium income this year from its new premium investment-linked product, PRUlink assurance account.

Navarro said the company expects to collect Rp 25 billion from the product within six months.

Total premium income as of June totaled Rp 71 billion compared to Rp 39 billion for the same period last year, he said. (10)