Maskapai Reasuransi's profit down

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)