Allianz enjoys growing business in Indonesia

The Jakarta Post, Jakarta

Multinational insurer Allianz Group affirmed its long-term commitment to Indonesia during a presentation on Tuesday of the 2001 results for its two local companies, PT Asuransi Allianz Life Indonesia and PT Asuransi Allianz Utama Indonesia.

Despite difficult economic circumstances, Allianz Life Indonesia president Frank Levene said the business was now among Indonesia's top five joint venture life insurance companies.

Allianz Life Indonesia's gross written premium for 2001 increased 96 percent to Rp 227 billion (US$21.83 million) from the previous year, with total assets also up 96 percent to Rp 394.65 billion in the same period.

The company had expanded from 28 sales branches to 120 sales branches in more than 60 locations throughout Indonesia, and posted an 86 percent increase in premium income for 2001.

Allianz Utama Indonesia president Uwe Michel was particularly optimistic about the nonlife insurance venture's potential to penetrate the retail market, through new product lines for small and medium scale enterprises and coverage for shophouses.

Allianz Utama Indonesia reported a 62.35 percent growth in gross written premium to Rp 500.88 billion from the previous year, with pretax profits up 31.55 percent to Rp 18.08 billion, and shareholder funds posting an improvement of 25.7 per cent.

Michel said Allianz Utama would continue to grant clients coverage for terrorism and sabotage, despite an overwhelming move not to cover political risks following the World Trade Center attacks in September last year.

Allianz predicted the insurance industry would experience growth of 30 percent to 35 percent in 2002, despite the slow pace of economic recovery.

The Allianz Group is one of the world's largest financial operations, posting a worldwide gross written premium of $50.4 billion to third quarter 2001, with a net profit of $1.2 billion and assets under management of approximately $1.03 trillion.