Vehicle sales boost insurer's revenue

JAKARTA (JP): More vehicle sales in Indonesia are likely to boost PT Asuransi Astra Buana's premiums revenue this year, an executive said here yesterday.

The company's president, Willy Suwandi Dharma, said the firm expected to generate about Rp 100 billion (US$41.1 million) in revenue from vehicle insurance this year, compared to Rp 68 billion last year.

"Our total premium revenue is expected to surge to Rp 170 billion this year from Rp 136 billion last year," he said after presenting prizes to the company's premium holders.

Willy said the domestic vehicle sales could increase to 400,000 units in 1997 from about 350,000 last year.

"We aim to increase the number of vehicle premium holders from the about 200,000 at the end of 1996 to about 300,000 by the end of this year," he said.

The company was also offering incentives, including discount cards for purchases at the Astra Group's firms, to attract new customers.

Willy said his company wanted to increase its investment revenue to Rp 21 billion in 1997 from Rp 18 billion in 1996.

He said Astra Buana, with its total assets of Rp 166.25 billion as of last September, was the sixth largest loss insurance company in Indonesia in terms of assets. (13)