23 Apr 2004
PT Prudential Life Assurance to appeal Indonesian Court decision
PT Prudential Life Assurance recently terminated a consultancy contract for agency sales force management, following legal advice. As a result, the consultant has made a claim against PT Prudential Life Assurance for approximately US$ 40 million and has filed a bankruptcy petition in the Jakarta Bankruptcy Court. The Company considers, on the basis of its legal advice, that the bankruptcy petition is misconceived.
Jakarta's Bankruptcy Court returned its verdict today. It held that the Company owes the consultant approximately US$ 400,000 and as a result, has put the Company into bankruptcy. PT Prudential Life Assurance is very surprised that the Court has decided to accept the petition filed against it. PT Prudential Life Assurance plans to vigorously appeal the Jakarta Bankruptcy Court's decision.
While the appeal process is underway, Prudential' s operations in Indonesia intend to continue business as usual. All Prudential policies remain completely unaffected and our total commitment to our customers and our employees continues undiminished.
PT Prudential Life Assurance is financially very strong. Its Risk Based Capital (RBC) ratio of 255% (as at December 31, 2003) compares very favourably with the 100% requirement dictated by the Ministry of Finance.
- ENDS -
||0207 548 3911
||020 7548 3721
||020 7548 3537
||020 7548 3719
||020 7548 3511