Lippo Life revises target

JAKARTA (JP): Publicly listed insurance firm, Lippo Life, has revised upwards its pretax profit projection for this year to Rp 146.7 billion (US$60.9 million) from Rp 114.8 billion.

The company revised its net income projection to Rp 130 billion from Rp 100 billion.

As a result the company's earnings per share is expected to reach Rp 340, lifting its price earnings ratio to 7.6 based on yesterday's closing price of Rp 2,650 per share, the company said.

The company said the increase in projected profit was because of better sales or premium income, expected to be Rp 578 billion, and higher investment income of Rp 263 billion.

Greater cost efficiency, both acquisition costs and operating expenses, contributed to the increase, the company said.

Lippo Life, a subsidiary of Lippo Group, said it would have revenue of more than Rp 847 billion this year. The previous projection was Rp 610 billion.

Last year, the company's net income rose 149 percent to Rp 50.1 billion from Rp 20.1 billion in 1995. (02)