Manulife eyes 25% growth

The Jakarta Post, Jakarta

PT Asuransi Jiwa Manulife Indonesia (AJMI), a local unit of Canada's largest insurer, Manulife Financial Corp., is confident revenue from its insurance premiums will grow by at least 25 percent this year on higher economic growth in the country.

AJMI president director John Harrison said on Tuesday the company expected premium revenue to increase to at least Rp 1.8 trillion (US$185 million) this year from Rp 1.4 trillion last year.

"We are projecting solid growth of more than 25 percent this year. Our policyholders have so far grown from 850,000 at the beginning of the year to 900,000," he said after meeting with Vice President Jusuf Kalla.

The meeting was also attended by Manulife Financial chief executive officer Dominic D'Alessandro and a number of officials from the Canadian Embassy.

During the meeting, the company emphasized its commitment to expanding its business in Indonesia by seeking acquisition opportunities, as well as ways to expand the domestic insurance market.

"We have been here for 20 years and we are comfortable with the country ... (but) the penetration of insurance in this country is very low. If the economy grows higher, the opportunity will become more vivid and more real," said D'Alessandro.

The government is targeting economic growth of at least 6 percent this year, on the back of more stable economic and security conditions, as well as an anti-corruption drive.

Aside from the insurance business the company is also engaged in managing mutual funds, with its largest investment portfolio currently comprised of government bonds worth about $900 million, Harrison said.

In total, the company is managing assets worth some $1.5 billion. Its business has expanded to 36 cities throughout the country and is supported by about 4,000 insurance agents.