Aussie, British insurers enter RI

JAKARTA (JP): Australian and British insurance companies have entered the Indonesian market by teaming up domestic partners to set up joint ventures.

The QBE Insurance Group of Australia has teamed up with PT Pool Asuransi Indonesia to establish a joint venture here with a paid-up capital of Rp 15 billion (US$6.8 million).

The new venture, called PT Asuransi QBE Pool Indonesia, is 70 percent owned by QBE Insurance and the remaining 30 percent by the Indonesian partner.

In a statement made available yesterday, the chairman of QBE Insurance, J.D.O. Burns, said the new venture will concentrate on meeting the insurance needs of small and medium sized Indonesian businesses, private individuals and Australian companies operating in or trading with Indonesia.

Commercial Union Assurance Company Plc. of Britain has joined PT Asuransi Tifa International by injecting a fresh fund of Rp 15 billion to get a 80 percent stake.

A spokesman for Asuransi Tifa said yesterday that the company, after the equity participation of the British firm, has now changed its name into PT Asuransi Commercial Union Indonesia.

The Ministry of Finance said Indonesia's insurance companies have reported their total assets standing at nearly Rp 7.36 trillion as of the end of September, of which Rp 3.24 trillion was held by loss insurers, Rp 3.37 trillion by life insurers and Rp 736.68 billion by reinsurance firms.

The total equities of all insurance companies were reported at Rp 2.39 trillion as of the end of September, including Rp 1.71 trillion held by loss insurers and Rp 727.31 billion by life insurers. Reinsurance companies had a negative net worth of Rp 44.55 billion as of September.(riz)