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)