Maskapai Reasuransi's profit down

JAKARTA (JP): PT Maskapai Reasuransi Indonesia Tbk, a publicly listed reinsurance company, reported on Tuesday a 40 percent drop in net profits to Rp 2.75 billion (US$35,000) in 1999 from Rp 4.55 billion in 1998.

Company president R.A. Wuwungan said the lower profit was due to a drop in premium and investment income amid a slowdown in the country's economy.

Wuwungan said gross premium income dropped 22.5 percent to Rp 67.18 billion in 1999 from Rp 86.72 billion in 1998, while its investment income fell by about 80 percent to Rp 4.41 billion in 1999 from Rp 21.85 billion in 1998 due to the decrease in interest rates.

About 80 percent of the premium income was contributed by the company's life and fire reinsurance contracts while other reinsurance businesses provided the other 20 percent, he said after the company's shareholders meeting.

The annual shareholders meeting on Tuesday approved a final dividend of Rp 63 per share for 1999, about 60 percent of its earnings per share of Rp 107.

The company's share price on the Jakarta Stock Exchange closed at Rp 1,650 on Tuesday.

Wuwungan said the company projected a 50 percent increase in profits for this year to Rp 4.11 billion from Rp 2.75 billion in 1999 on an expected increase in new clients.

He said net profits in the first four months of 2000 reached Rp 1.79 billion.

Wuwungan said the company had cooperated with 45 local companies within the Consortium for the development of the insurance industry in Indonesia for oil and gas, to maximize the retention of the domestic insurance industry. (07)