Jasindo expects 10 percent increase in profit this year

JAKARTA (JP): PT Asuransi Jasa Indonesia (Jasindo) expects a 10 percent increase in premium income and net profit this year, an executive of the state-owned insurance company said yesterday.

Company president Amir Imam Poeroe said here yesterday that next year's net profit would far exceed the initial target of Rp 25 billion (US$9.65 million).

Amir said the insurance company's premium income rose 4 percent to Rp 450 billion last year from Rp 430 billion in 1995 while net profit rose 65 percent to Rp 26.5 billion from Rp 16 billion in 1995.

Amir was speaking to reporters after the presentation ceremony of an ISO 9002 certificate from PT Sucofindo International Certification Services (SICS) to the insurance company.

He said Jasindo was the first Indonesian state-owned insurance company to get the ISO 9002 certificate.

Amir said the insurance company did not have any plan to float its share in the capital market even though its financial performances showed encouraging results in the last few years.

"What's the point of going public if we can still generate funds from the public through our insurance scheme?" he asked.

A U.S.-based rating agency Standard and Poor's (S&P) gave a triple B (BBB) rating to the company in June this year reflecting the company's leading market position, good financial structure and profitable earning track record.

S&P said Jasindo's financial position was sound, with a satisfactory capital base assisted by the recent capitalization of an Rp 80 billion government loan and sound reinsurance arrangements, although there was a high reliance on reinsurance receivables at various times.

The company, which derives 60 percent of its premiums from government business, has a 19 percent market share in Indonesia's insurance business.

The company has been chosen to lead a consortium of local and foreign insurance companies to insure four new Indonesia satellites for US$350 million.

The satellites, to be launched within the next two years, will be operated by state-owned PT Telkom and two subsidiaries of PT Pacific Satelit Nusantara. (aly)