Jasindo expects 10 percent increase in profit this year
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)