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)