Dharmala sees higher income

JAKARTA (JP): Publicly listed PT Dharmala Insurance expects a 17 percent increase in gross premium income this year from Rp 145 billion (US$16.86 million) last year, the company has said.

Director M. Mulyatno said Monday the rupiah's depreciation against the dollar had increased the value of the insured amount and thus the gross premium had increased.

Mulyatno said the company, which focuses largely on motor vehicle insurance, also expected the ailing automotive industry to recover in the second half of this year.

Dharmala's net profit last year rose to Rp 13.25 billion from 7.17 billion in 1996. Motor vehicle insurance contributed more than 70 percent of the total company portfolio in gross premiums income, he said after the company's shareholder meeting.

At the meeting, shareholders agreed on a dividend for the 1997/1998 year of Rp 335 per share. (das)