Lippo triples profit

JAKARTA (JP): Publicly listed insurance firm Lippo Life reported a huge increase in pre-tax profit yesterday from Rp 20.1 billion in 1995 to Rp 66 billion (US$27.2 million) last year.

Net earnings jumped from Rp 20.1 billion to almost Rp 60 billion last year.

The company's managing director, Roy E. Tirtadji, said his firm had "underwritten 30 percent of all new premiums in Indonesia, translating into premium income of Rp 475 billion last year, up from Rp 365.4 billion in 1995".

Investable funds rose from Rp 570.9 billion to Rp 1.8 trillion and investment income rose from Rp 88.4 billion to Rp 147.8 billion.

Lippo Life's equity investments gave it an unrealized capital gain of nearly Rp 40 billion, excluding its Rp 300 billion direct investment in Lippo Bank.

This year Lippo Life expects premium income to rise to Rp 578 billion, investable funds to increase to Rp 2.2 trillion and investment income to rise to Rp 845.1 billion.

Net income for 1997 is expected to be Rp 130.8 billion, with earnings per share doubling to Rp 340. (rid)