Lippo Life reports surge in net profit

JAKARTA (JP): Lippo Life, the publicly listed life insurance company booked a net income of Rp 31.2 billion in the first quarter of 1997, almost five times higher than Rp 6.2 billion booked in the same period last year.

Total revenue recorded in the first quarter of this year was Rp 206.9 billion compared to Rp 136.6 billion generated during the same period in 1996, a company statement said.

Premium income rose to Rp 143.1 billion in the first quarter of 1997 compared to Rp 113.2 billion in the same period last year, the company said.

The statement said investable funds rose to Rp 1.9 trillion in the first quarter this year compared to Rp 600 billion in the same period last year. Investment income rose to Rp 64.1 billion in the first quarter this year compared to Rp 23.8 billion in the same period last year.

A senior executive of the firm Sri M. Srimardji said that first quarter results recorded by the firm would ultimately support the company to achieve its targets in 1997.

"This will give investors confidence that Lippo Life is capable of achieving its goal in 1997," she said.

She said the insurance company was expected to register a premium income of Rp 578 billion in 1997, up from Rp 475 billion in 1996.

The investable funds were projected to reach Rp 2.2 trillion in 1997, up from Rp 1.8 trillion collected in 1996 with total investment income reaching Rp 263.7 billion compared to Rp 147.8 billion in 1996.

She said that total revenue was expected to increase to Rp 845.1 billion in 1997 from Rp 624.2 billion in 1996.

"Net income is projected to be worth Rp 130.8 billion in 1997, up from 1996's net income of only Rp 66 billion," she added.

Sri said with such net income growth, the earnings per share for 1997 were projected to be worth Rp 339 compared to Rp 170 per share in 1996.

Lippo Life booked Rp 66 billion in net profit this year, 30 percent higher than the previously projected Rp 50.1 billion.

The company announced Wednesday that the net profit in 1996 rose 300 percent from Rp 20.1 billion in 1995. (09)