Lippo Life reports strong results

JAKARTA (JP): Publicly listed Lippo Life reported yesterday a 500 percent increase in its operating profit in the first half of this year to Rp 69.8 billion (about US$27.9 million) from Rp 13.7 billion in the first half of 1996.

Company president and chief executive officer Billy Sindoro said net income rose about 370 percent to Rp 65.8 billion in the first half this year from Rp 14 billion in the same period of 1996.

"Therefore for the first six months of 1997, the company recorded as much as for the entire year of 1996," he said.

Lippo Life sustained the high growth it registered in previous years by recording a overall strong financial position with total revenue surging from Rp 304.3 billion in the first half of 1996 to Rp 453.5 billion in the first half of 1997.

"During the first six months of this year, the company continued to be very aggressive in generating revenue through innovative product development, creative promotion and its dynamic sales force," he said. He said premium income rose to Rp 324.5 billion in the first semester this year from Rp 257.4 billion in 1996.

Roy E. Tirtadji, managing director of the widely diversified Lippo Group, said Lippo Life maintained a high level of revenue growth and remained one of the most efficient life insurers in the country.

In the first half of 1997, the ratio of operating profit to total revenues soared to 15.4 percent from 4.5 percent last year, with the ratio for the entire year of 1997 projected at 18.2 percent, he said.

Roy said Lippo Life expected to see exceptional 1997 year-end results, with premium income rising from Rp 478 billion at the end of 1996 to Rp 598 billion, investable funds increasing from Rp 1.8 trillion in 1996 to Rp 2.7 trillion and investment income climbing from Rp 147.8 billion in 1996 to over Rp 288.5 billion.

Total revenue is projected to rise from last year's Rp 624.2 billion to Rp 885.2 billion and net income from Rp 66 billion last year to Rp 150 billion.

Analysts said Lippo Life's impressive performance in the first semester this year was in line with their expectations.

Fu Ya Yin, a senior analyst from Vickers Ballas of Singapore said Lippo Life's strong performance in the first half of 1997 justified most analysts' confidence that it would reach and probably even surpass the targets set for the entire year of 1997. (hen)