Sewu New York Life pays out Rp 303 billion<\/p>\n
JAKARTA (JP): Joint venture life insurer PT Asuransi Jiwa Sewu
\nNew York Life said on Thursday it spent Rp 303 billion (US$34.4
\nmillion) in 1998 to compensate surrendered U.S. dollar-
\ndenominated policies.<\/p>\n
The company's president Donald Carden said many dollar-
\ndenominated policy holders could not continue to pay their
\npremium due to the sharp depreciation of the rupiah against the
\ngreenback.<\/p>\n
\"We had to pay out Rp 303 billion in 1998 to our policy
\nholders who surrendered U.S. dollar-denominated policies because
\nthey could not continue to pay their premium due to the
\nsignificant rupiah depreciation,\" he told a press briefing.<\/p>\n
Carden said the company paid those policy holders at the
\nprevailing dollar-rupiah exchange rate -- even when it was Rp
\n15,000.<\/p>\n
However, he said, the company hedged all its dollar
\nobligations with dollar deposits at sound local banks.<\/p>\n
\"Our record of paying our policy holders at a fair market
\nexchange rate has attracted more clients wanting to invest with
\nthe company,\" he said.<\/p>\n
The big inflow of new clients in 1998, Carden said, boosted
\nthe company's revenue to Rp 172 billion, a 45 percent growth from
\nthe previous year -- the highest increase ever booked by the
\ncompany.<\/p>\n
\"We made a 45 percent revenue increase in 1998. I think life
\npolicy holders tend to be more careful and have switched their
\ninsurance to a financially stronger firm.\" Carden said.<\/p>\n
The company, however, did not reveal its operating costs nor
\nits net profit for 1998.<\/p>\n
Sewu New York Life is a joint venture between New York Life
\nInternational of the United States and PT Gunung Sewu Kencana.<\/p>\n
The joint-venture operates 45 branches in 19 cities
\nnationwide.<\/p>\n
Donald said he was optimistic about the outlook of the
\ndomestic insurance industry in 1999.<\/p>\n
\"Indonesia is moving towards a more stable political
\ncondition. Whatever the result of the June election, the people
\nof Indonesia have to live with it. And the economy will have to
\nreturn to normal,\" he said.<\/p>\n
Total domestic life insurance premiums expanded by 25 percent
\nto Rp 3.5 trillion in 1997, according to the directorate of
\ninsurance at the Ministry of Finance. The 1998 figure is not
\navailable yet. (02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sewu-new-york-life-pays-out-rp-303-billion-1447893297",
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