Lippo Life reports strong results

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)