Insurer to buy more stocks

JAKARTA (JP): Astra Jardine CMG Life, a joint insurance venture, plans to increase its investments in stocks after the improvement of Indonesia's capital market, Peter J. Smedley, chief executive officer of CMG of Australia, said yesterday.

He told reporters here that Astra Jardine CMG will increase the portion of its investment in stocks from 20 percent at present to 50 percent, while reducing its investment in fixed- rate instruments from 80 percent to 50 percent.

Astra Jardine CMG is 50 percent owned by Astra International of Indonesia and 50 percent by the Hong Kong-based Jardine-CMG, a joint venture between Jardine of Hong Kong and Colonial Mutual Group (CMG).

Smedley said that through a recent campaign to commemorate the Indonesian golden anniversary, the company issued more than 1,400 new policies to generate Rp 3 billion (US$13.1 million) in premiums.

The president of the company, Rob Phillips, said the firm recorded total assets of over Rp 17 billion as of last year.(kod)