Asuransi Jiwasraya Disbanded

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

The transfered policies were valued at 38 trillion rupiah ($3.2 billion), local news outlet Antara reported, citing a Financial Services Authority official. Jiwasraya was founded as a Dutch-owned entity in 1859 and was nationalized by the Indonesian government in 1960.

A 2016 audit revealed violations of investment guidelines that eventually led to a negative equity of more than 28 trillion rupiah, prompting the government to begin work to rescue the company. Its near collapse hurt more than 7 million clients across the country.