Jasindo investment grows 0.6%

In the meantime, Asuransi Jasa Indonesia (Jasindo) had investment fund as much as IDR1.87 trillion in the first half of the year, surpassing the work plan and budget set earlier at IDR1.48 trillion.Jasindo Finance Director Solihah explained that the below-expected yield was mainly the result of paying reinsurance premium to overseas company as much as US$31 million in July. Earlier in June, the company booked premium revenue as much as US$40 million from PT PLN and natural oil gas insurance.The premium revenue, as she explained, had once invested in short-term deposit before being withdrawn for paying the overseas reinsurance.In comparison, the yield is so small because the divider is too big, she explained.Jasindo allocated investment fund in bank time deposit portfolio as much as 56.14%, in equities 1.47%, bonds 20.2%, mutual funds 6.13%, capital placement 13.43% and deposited fund in investment manager 2.67%.The company put most investment in bank time deposits since it had reciprocal business with banks.Allocation of mutual funds fell 11.62% because there were redemptions in the first half of the year, while last year there had been no redemption at all, she saidThough its growth is slower than in the first half of 2010, the investment yield of IDR34.59 billion has completed 26.45% of work plan and budget.Jasindo posted gross premium income at IDR1.58 trillion, increasing 12.92% from IDR1.4 trillion in the same period last year, said President Director Budi Tjahyono.Compared to work plan and budget, the gross premium income has completed 47.12% of the targeted IDR3.36 trillion this year.In the meantime, Jasindo had net profit as much as IDR128.82 billion in the first half of the year, increasing 35.84% from the same period last year.New business line in natural gas and oil insurance, increasing premium tariff for higher risk and new customers are factors for premium growth during the six-month period.Property insurance contributed the most with IDR634.17 billion to the revenue, followed by miscellaneous insurance IDR204.46 billion and automotive insurance IDR188.92 billion. At the same time, transportation and aviation insurance declined by 11.88% and 18.82% respectively.One cause of the drops was adjustment of aviation insurance in March, which reached US$2 million. Moreover, the transportation insurance business had bad performance because it offers no renewal premium, in addition to bad weather that gave impact to transportation.Satellite insuranceFurthermore, Jasindo is appointed to handle the insurance of satellite, which will launch in late January 2012.According to Budi, the satellite insurance is worth US$30 million, 5% of which will be settled in the second half of the year. The remaining premium will be received within a month before the satellite launches.The company made agreement with an airline, Susi Air, for aviation insurance product in June. The deal is worth US$1.1 million, he said.In addition, Jasindo will release a modified life insurance, which is provided as a responsibility of employer to employee. (19) (t04/msw)