Astra Buana expects 25% rise in premium income

Astra Buana expects 25% rise in premium income

JAKARTA (JP): PT Asuransi Astra Buana's premium income is
expected to increase by 25 percent to Rp 170 billion (US$47
million) this year despite the impact of the current monetary
crisis.

The company's vice president Hardi Montana said yesterday the
company's total premium income already reached a total of Rp 149
billion as of September this year.

"We will not revise the target, but in a monetary condition
like this, we would not expect more," Hardi said of the impact of
the sharp fall in rupiah against the U.S. dollar.

Asuransi Astra Buana, a subsidiary of PT Astra International,
focuses its business in motor vehicle insurance through its Garda
Otto service.

Meanwhile, the company's finance and administration director
Natsir Natanagara said the current currency crisis had an
indirect impact on insurance companies' premium income due to
some project postponements.

Natsir said the rupiah's depreciation against the U.S dollar
had, for example, raised Astra Buana's claim payment due to the
price increase of spareparts.

"But the increase was very little," he said.

Natsir admitted that the rupiah's drop could hike the
company's investment revenues due to the increase of interest
rates as a result of the tight monetary policy imposed by the
government since early August.

He said the company's premium income denominated in U.S
dollars reached at least five percent, while its investment in
the currency reached around 2.5 percent of its total investments.

Indra Baruna, the company's business support manager said that
the company had paid around Rp 27.2 billion in claims during the
January-September period this year.

Indra noted that 92 percent of the amount was claimed for car
collision cases, while the remaining eight percent was claimed
for stolen cars.

He said by the end of September, the company had given
compensation for 863 units of stolen cars.

"At least 55 percent of claim payments, or as much as Rp 14.9
billion, was paid for minor-loss cases, while 45 percent, or Rp
12.2 billion, was for total-loss cases," Indra said.

Astra Buana, which was established 41 years ago, currently has
360,000 policy holders throughout Indonesia.

The company's total assets were put at Rp 180 billion last
year, an increase of 38 percent from Rp 130.26 billion in 1995,
putting it among the top six insurance companies in Indonesia in
terms of assets. (08)