Astra CMG Life's premium income up 77%

JAKARTA (JP): PT Astra CMG Life's total premium income increased 77 percent to Rp 18 billion (about US$7.2 million) in the first six months of this year from Rp 10.2 billion a year ago.

The increase continues 1996's trend, when total premium income rose 80 percent during the 12-month period to Rp 25 billion, Julie Syaftari, a director of the company, said in a news conference Saturday.

The company is a 50:50 joint venture between Indonesia's Astra International and Australia's Colonial Mutual Group (CMG).

The news conference was called to announce the changing of the company's name, from PT Astra Jardine CMG Life, and to announce its activities to mark its fifth anniversary.

Hong Kong's Jardine Group sold its shares in the joint venture to CMG Asia of Australia in February.

CMG Asia has operations in Hong Kong, the Philippines, Indonesia, Malaysia, Thailand, China and Vietnam. It is a wholly owned subsidiary of Colonial Ltd, a leading Australian financial services company which has more than 120 years experience in life insurance.

"Most of our clients are from the middle to upper income group," Julie said.

The company now plans to tap the growing market segment of people from the middle to lower income group.

"In the next three months we will launch a product with contracts as low as Rp 10 million to attract people from the middle to lower income group, " Julie said.

The company's minimum contract is currently Rp 20 million.

PT Astra CMG Life has 11 sales offices in seven cities, with five located in Jakarta, and one each in Bandung, Surabaya, Medan, Banjarmasin, Palembang and Malang. The company plans to expand to all areas of Indonesia.

Company president Rob K. Phillips said life insurance has very good prospects in Indonesia because its people were seeking better ways to prepare for the future financial security of their families.

"The education of children, the protection of their loved ones against the risks of serious illness, the building of savings and having sufficient funds for a comfortable retirement are important goals for people now," he said.

The company's total assets were put at Rp 52 billion at the end of June, putting it among the top 10 insurance companies in Indonesia, Julie said.

To mark its fifth anniversary, the company is sponsoring children's exhibitions and seminars in Jakarta, Bandung and Surabaya, in cooperation with Pantara Foundation, a foundation to treat students with learning disabilities. (08)