Insurance firm's paid up capital reaches Rp 12.1b

Insurance firm's paid up capital reaches Rp 12.1b

JAKARTA (JP): PT Asuransi Astra Buana, a subsidiary of the
publicly listed PT Astra International, yesterday announced an
increase of Rp 6 billion (US$2.7 million) in its paid up capital
to a total of Rp 12.1 billion.

Willy Suwandi Dharma, president director of Asuransi Astra
Buana which is commonly known as Astra Insurance, said that the
additional capital was designed to enlarge the company's risk
acceptance capacity and strengthen the company's capital
structure.

"We expect that the shareholders' equity will approach Rp 25
billion by the end of 1995," Willy said.

He added that the company's retained earnings at the end of
last year reached Rp 7.8 billion, thereby increasing its total
capital to Rp 19.9 billion.

Last year, the company booked a gross premium of Rp 67.9
billion, up 73 percent from the previous year. This year, Willy
said, the company is projected to collect some Rp 95 billion in
gross premium.

Sophar Lombantoruan, Director of Insurance at the Directorate
General of Financial Institution of the Ministry of Finance, said
additional capital at Astra Insurance and other local insurance
companies is essential to increase the national retention
capacity of Indonesia's insurance industry.

"Capital is an important element to achieve a healthy, strong
and reliable insurance industry in Indonesia. Therefore, the
government has always urged insurance companies to strengthen
their capital bases. Otherwise, they would be edged out of the
market by strong international insurance companies," Sophar said.

He noted that Astra's Rp 12.1 billion of paid up capital is
actually small compared to international insurance companies,
which have been allowed to enter Indonesia.

In comparison, joint-venture insurance companies have an
initial paid up capital of Rp 15 billion. (rid)