Danamon Aetna Life ties global knowledge, local touch

Aetna made a bold and strategic decision three decades ago to look farther afield than its established base in the United States.

The company, already one of the leading insurance firms in the U.S. after over 100 years in business, opened 30 years ago a new division, Aetna International Inc. (AII), to tap the vast growth opportunities in foreign markets.

This vision paid off and today, AII operates in 14 countries, with 18,000 agents outside of the U.S. serving more than eight million customers. Its strategic alliances provide group benefits in more than 68 countries.

Aetna's unending quest to identify the best market strategies was also evident last year, when the company merged with U.S. Healthcare, the largest health management organization in the U.S., to form Aetna U.S. Healthcare. The move was made to reposition the company for long-term growth and superior financial management.

Financial analysts were bullish on the merger. Operating earnings grew from US$124.1 million in the first quarter of 1996, to $186.8 million at the end of the first quarter of this year.

Success is ultimately measured in the company's bottom line. Aetna has US$93 billion in assets and 40,000 employees worldwide.

All predictions are for the company to continue on its successful path by focusing its business development on three main business sectors of Aetna U.S. Healthcare, Aetna Retirement and AII. All are profitable operations which fill a vital market niche.

AII's future growth prospects appear particularly outstanding owing to the growing middle class in Asian countries, including Indonesia. Among AII's offices in the Asia-Pacific region is PT Danamon Aetna Life Insurance Company.

PT Danamon Aetna Life was founded in 1995 as a partnership between Aetna International and the Danamon Group, one of Indonesia's foremost financial services companies. In just two short years it has combined Aetna's vast international insurance experience with Danamon's peerless knowledge of the Indonesian business climate.

AII has distinguished itself as a company which has the highest ethical standards and respect for the cultures in which it does business. In Indonesia, this has translated into the company investing time, funding and people power in developing extensive training programs for its staff.

The resulting formation of a "service excellence" culture among Aetna's family of employees and agents has contributed to the excellent growth of PT Danamon Aetna Life in its short term of business.

The company operates from the Wisma Danamon Aetna Life, a new Jakarta landmark office building on Jl. Sudirman. It employs 200 permanent employees and nearly 450 agents in offering both health and life insurance policies. In response to its excellent performance, the company plans to double its nationwide distribution network from 12 sales offices in 3 cities to 25 offices in 13 cities.

In all its operations, Aetna emphasizes a willingness and adaptability to customer needs for insurance products in this rapidly changing world. The concern is practical as Aetna seeks to provide insurance products most suited to modern lifestyles and demands throughout a customer's life.

PT Danamon Aetna Life's motto for success in Indonesia has been "We do more for you". This translates into professionalism on every level of contact with customers, innovative products tailored to meet local needs and superior customer service.

There is enormous potential and prospects in Indonesia's insurance business. In the past three years, growth in insurance operations has continued unabated in Indonesia.

Data shows that total life insurance premiums grow faster than GDP in many emerging markets as people place a priority on protecting their improved financial status. This key business indicator is relevant to Indonesia, where Aetna has experienced strong market demand based on its ethical approach, innovative and competitive insurance products and superior customer service.

Aetna's appreciation of the outstanding performance of its Indonesian staff was shown with the visit of Frederick C. Copeland Jr., President and CEO of Aetna International, to its office on May 23.

Copeland not only expressed a much-deserved "well done" to employees for their efforts, but also inspired them for the challenges that lie ahead.

The backbone of Aetna's success is sticking to tried- and-true formulas of satisfying the customer, and Copeland chose to quote from company founder, Eliphalet A. Bulkley.

"For people who are creating a new industrial order, the exciting appeal of our business is its ability to safeguard their financial future and that of their families."

Copeland noted that Bulkley's words remain as relevant today for Aetna's operations in Indonesia as when they were first uttered more than 140 years ago.