Principal's solvency soars

Principal's solvency soars

JAKARTA (JP): Principal Indonesia announced on Wednesday its
solvency margin reached 821 percent at the end of 1999, based on
the new required risk-based capital calculation.

The company said this figure was far above the government's
minimum requirement of 5 percent for the first quarter of this
year, and far above the United States standard, which ranged
between 120 percent and 150 percent.

"With this high solvency margin, we can provide security to
our customers and continue to grow at a rapid rate," company
president F. Doug Rasmussen said in a statement.

He said at the end of 1999, Principal Indonesia acquired
additional capital totaling US$4 million (around Rp 27.6 billion)
from its U.S.-based parent company Principal Financial Group.

He said the capital injection demonstrated Principal Financial
Group's commitment to the pension business in Indonesia and
increased its shares in Principal Indonesia to 90 percent.

Assets managed by Principal Indonesia rose to Rp 150 billion
last year, representing 94 companies and 10,000 employees.

Principal Indonesia focuses its business on retirement plans
and other services, including insurance. (jsk)