Local insurance firms in Indonesia perform better than foreign ones

Local insurance companies perform better than many foreign-owned companies in Indonesia, a study released by a research company on Thursday in Jakarta shows.

The study, prepared by the Insurance Media Research Insitute (LMRA), was made based on the financial reports of 135 companies - 88 general insurance, 43 life insurance and 4 reinsurance companies excluding those that published their reports after May 15.

The list is further devided based on the capital value into categories. Best performers in each of the capital categories in the life insurance industry are all local companies: PT Asuransi Jiwa Sinar Mas, PT Asuransi Mega Life, PT Asuransi Bumi Asih and PT Multicor Life Indonesia.

Local companies also rule in the general insurance list under the same capital groupings: PT Asuransi Adira Dinamika, PT Asuransi JAya Proteksi, PT Asuransi Umum Mega and PT Asuransi Asoka Mas respectively.

Frans Sahusilawane, the president director of the national reinsurer for catastrophic risks company Maipark, said the research shows that local ownership and management teams have shown superior performance compared to foreign players.

Overall, the reports describes Indonesia life insurance industry achieved an overall growth of profits 20% in 2007 compared to 2006. In general insurance industry, profits grew by 47% compared to last year.

source: Jakarta Post | 13 June 2008