AIA expects higher premium income in 2000
AIA expects higher premium income in 2000
JAKARTA (JP): Insurance company PT Asuransi AIA Indonesia
expects a 30 percent to 35 percent increase in total premium
income in 2000 from Rp 178.94 billion ($21 million) achieved in
1999 through the opening of 10 new sales offices later this year.
Outgoing general manager and director Mark S. O'Dell said on
Wednesday that the new offices in Sumatra, Java, Bali, Sulawesi,
and Kalimantan, were part of an expansion plan made by the
company since the beginning of the economic crisis in 1997.
"The crisis did not deter our plan for expansion," he said.
AIA Indonesia, a subsidiary of the American International
Assurance Co. Ltd, has opened 32 new sales offices in Indonesia
since July 1997.
The company, which became the first multinational insurance
company in 1975, is currently represented by 2,500 agents.
The company's risk based capital of 209 percent at the end of
March was one of the strongest in the industry, said O'Dell.
This is well above the 5 percent minimum required by the
Ministry of Finance and the 100-120 percent minimum international
standard, he said.
"This strong position is the result of a successful investment
strategy achieved in conjunction with capital security," he said.
O'Dell will soon transfer to Malaysia and his post in
Indonesia will be filled by Chris Lossin from AIA in Hong Kong.
AIA Indonesia saw an increase in premium income in 1999 to Rp
178.94 billion from Rp 118.5 billion in 1998.
It forecast a 240 percent increase in new premiums and hope to
achieve a further 50 percent increase this year, Mark said.
AIA earned Rp 22.7 billion ($2.67 million) net profit in 1999,
down from Rp 29.9 billion ($3.51 million) in 1998.
AIA launched on Wednesday a comprehensive life insurance
package called Peduli, vice president chief actuary and director
of operations Angger P. Yuwono said.
The product gives the benefit of free premium payments if the
holder suffers permanent disability from an accident, and a
benefit upon the death of a spouse, Angger said.
AIA expects to achieve some 2,000 new policies from this
product this year, he said. (10)