www.thejakartapost.com - Insurance company PT AXA Mandiri Financial Services reported a robust 76 percent growth in net profits to hit Rp 846 billion (US$92 million) last year, thanks to a large increase in premium sales from its unit-linked products and the strength of its “bancassurance” model.
The company’s total premiums in 2011 grew 72 percent from 2010 to reach Rp 4.85 trillion.
At the same time, its weighted new business premiums surged 56 percent to Rp 2.98 trillion, up from Rp 1.91 trillion. (source)
“We grew more than Indonesia’s life insurance industry, which grew 24.3 percent last year,” AXA Mandiri president director Albertus Wiroyo said on Tuesday.
He said that unit-linked products amounted to 76 percent of the company’s portfolio last year.
The company had 1.7 million customers as of the end of 2011, a 13 percent rise from the 1.3 million recorded a year earlier.
AXA Mandiri also saw large growth in its managed funds to Rp 10.61 trillion, which was a 32 percent increase on the Rp 8.04 trillion booked in 2010.
That increase boosted the company’s assets to Rp 11.56 trillion, a 37 percent increase on the Rp 8.49 trillion recorded in 2010.
In line with the large increases in the sale of premiums, AXA Mandiri also reported an 83 percent increase in risk claims, which topped Rp 109.4 billion last year.
In 2010, the risk claims recorded by the company amounted to just Rp 59.6 billion.
“The increase was still in our assumption. That was also a reflection of us — we saw an increase in premiums and also in giving benefits to our clients,” Albertus said.
The company’s risk-based capital (RBC) stood at 533 percent for its conventional portfolio, far higher than the minimum requirement of 120 percent.
RBC for its sharia portfolio was 47 percent, still higher than the minimum requirement of 30 percent, which will be implemented by the end of 2014 to replace the current requirement of 5 percent.
Albertus said that his company’s performance resulted in a stronger position as a leader of bancassurance, in which insurance products are sold by bank tellers, reporting a market share of 38.8 percent in Indonesia.
“In 2011, AXA Mandiri managed to maintain healthy business growth due to shareholders’ support, Bank Mandiri and AXA, which has a global skill in insurance risk management,” Albertus said.
AXA Mandiri is a joint venture between Bank Mandiri, which has a 51 percent ownership, and AXA (49 percent).
AXA Mandiri benefits from the strong network of Indonesian lending-giant Bank Mandiri, which has 1,100 branches across the country, and Bank Syariah Mandiri, which has about 150 branches throughout the archipelago.
AXA Mandiri chief financial officer Iwan Pasila said that the company would maintain its unit-linked products’ portion in the company’s portfolio this year.
“Unit-linked investment was worth Rp 140 billion last year,” Iwan said.
He added that AXA Mandiri would start to invest in corporate bonds this year.
“Like last year, about 40 percent investment will be in government bonds and another 40 percent in time deposits. We put 20 percent in stocks last year. This year, we will invest about 10 percent of our portfolio in stocks and the remaining 10 percent will be in corporate bonds,” Iwan said.
Source : http://www.thejakartapost.com/news/2012/04/04/axa-mandiri-reports-76-surge-net-profits.html - April 4, 2012
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