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 email@example.com
To contact the editor responsible for this story: Darren Boey at firstname.lastname@example.org