NYL bullish on RI's prospects<\/p>\n
JAKARTA (JP): Many foreign firms are set to abandon or slash
\nthe scope of their operations here due to the economic crisis and
\nominous rumors, but giant U.S. insurance firm New York Life (NYL)
\nis pledging to stay.<\/p>\n
Top executives of the group's international arm, New York Life
\nInternational (NYLI) -- chairman and CEO Gary Benanav, and
\npresident and COO Mike Nocera -- were in the capital over the
\nweekend to reaffirm the company's confidence and long-term
\ncommitment to the nation.<\/p>\n
\"We want to confirm to the Indonesian people that we are a
\nlong-term player here,\" said C. Donald Carden, president director
\nof PT Asuransi Jiwa Sewu New York Life (SNYL), NYL's Indonesian
\noperation and flagship company in Southeast Asia.<\/p>\n
\"Whether in good times or bad times, we are here to stay.\"<\/p>\n
He added that December was the best production month for the
\ncompany in 1997, despite the crisis.<\/p>\n
The company also announced it would expand on its current
\nnumber of 37 branches in 17 major cities nationwide, employing
\n2,300 people.<\/p>\n
\"We are optimistic that SNYL will continue to grow at double
\ndigit percentage points over the next five years,\" Carden said.
\n\"Although things are a little hectic at the moment, in the long
\nterm, we see a very bright future for the country.\"<\/p>\n
NYLI is also planning to invest more than US$1 billion in its
\ninternational operations -- currently found in nine countries --
\nover the next few years.<\/p>\n
The company is wholly owned by NYL, which has been in business
\nfor more than 150 years and ranks among the top three U.S.
\ninsurance firms with total assets of $80 billion.<\/p>\n
Benanav said his firm had no banking operation but was
\ninvolved in related businesses in mutual funds and securities
\nbrokerage services.<\/p>\n
NYL would not enter into other sectors in Indonesia, he said,
\nbecause its expertise was in life insurance operations.<\/p>\n
Commitment<\/p>\n
He stressed his visit was mainly to reaffirm the company's
\ncommitment to the country, adding that he would also meet key
\nofficials from insurance regulators.<\/p>\n
The group has invested $140 million in Indonesian private
\ncompanies' bonds. These include those issued by the pulp and
\npaper operations of the Sinar Mas Group: PT Indah Kiat Pulp &
\nPaper, PT Tjiwi Kimia; integrated fishing company PT Daya Guna
\nSamudra; toll road operator PT Citra Marga Nusaphala Persada,
\nowned by President Soeharto's eldest daughter Siti Hardiyanti
\nRukmana; and the Paiton power project.<\/p>\n
\"No maturity due this year,\" said Tatang Widjaja, an SNYL
\ndirector.<\/p>\n
Carden added that 10 percent of the firm's Rp 455 billion
\n($55.50 million) in investment funds was invested in the stock
\nmarket, with the majority allocated in time-deposits.<\/p>\n
\"None were in the liquidated banks,\" he said, referring to the
\n16 private banks closed by the government in November last year.<\/p>\n
Benanav also said his company had interests in acquiring other
\ninsurance firms in the country.<\/p>\n
\"We are currently looking at the marketplace for
\nopportunities,\" he said.<\/p>\n
The government has recommended that the country's insurance
\nsectors should follow the banking sector's massive merger plans
\nto consolidate strengths.<\/p>\n
Under the proposal, the nation's 200 insurance firms should
\nmerge into five large operations.<\/p>\n
\"We would be one of the five,\" Carden said.<\/p>\n
NYLI's local partner is the Gunung Sewu Group, which has
\ndiversified operations in property, agroindustry, banking and
\nsecurities. They formed their joint venture operation six years
\nago.<\/p>\n
Gunung Sewu was formerly the local partner of Hong Kong's
\ngiant investment bank, Peregrine Investments Holding, which
\nrecently filed for bankruptcy, partly due to outstanding $260
\nmillion in loans to an Indonesian taxi firm, ironically called PT
\nSteady Safe. (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/nyl-bullish-on-ris-prospects-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}