Jasindo rated BBB

Jasindo rated BBB

JAKARTA (JP): Rating agency Standard and Poor's (S&P) has
given state-owned PT Asuransi Jasa Indonesia (Jasindo) a BBB
rating, reflecting Jasindo's "leading market position, good
financial structure and profitable earnings track record and the
benefits of ownership by the government of the Republic of
Indonesia".

A statement released by S&P said the rating -- S&P's first
claims-paying ability rating in Indonesia -- was "moderated by
Jasindo's investment assets quality and perceived industry risk
associated with the Indonesian insurance industry's current stage
of evolution and planned deregulation".

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 re-insurance
arrangements, although there was a high reliance on re-insurance
receivables at various times.

Sixty percent of Jasindo's premiums are derived from
government business. It has a network of 46 branches in
Indonesia. (pwn)