Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Insurer Multi Has Biggest 3-Day Drop in 16 Months: Jakarta Mover

Jan. 23 (Bloomberg) -- PT Asuransi Multi Artha Guna, Indonesia’s second-largest insurance company by market value, posted its biggest three-day drop in 16 months on concern floods in Jakarta will lead to a jump in claims and hurt earnings.

Multi Artha Guna fell 4.1 percent to 235 rupiah by 2 p.m. local time, after slumping as much as 6.1 percent. The Jakarta Composite Index slipped 0.2 percent. Multi Artha Guna shares have lost 13 percent over the past three days, the most since the period ended Sept. 26, 2011.

Jakarta’s floods killed at least 20 people last week and caused widespread damage to homes, vehicles and public facilities. Investor Daily Indonesia reported today insurance claims may reach 3 trillion rupiah ($310.9 million) compared with around 2.1 trillion rupiah during a similar disaster in the capital city in 2007.

“The shares were hit by concerns over claims that might arise from the floods,” Robby Hafil, an analyst at Trimegah Securities in Jakarta, said by telephone. “However, the market potential for insurance companies is still huge in Indonesia. The public awareness on the need for insurance is still very low.”

Multi Artha Guna’s trading volume was 80 percent of its three-month average, according to data compiled by Bloomberg. Shares of other insurance companies fell with Asuransi Dayin Mitra declining 4.1 percent and Lippo General Insurance losing 3.5 percent.

To contact the reporter on this story: Harry Suhartono in Jakarta at hsuhartono@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.