Jaya Proteksi Adds Rp.10 Billion to Capital
Bisnis Indonesia, page B4, 2006-06-06
PT Asuransi Jaya Proteksi (AJP) targets to annually sustain Rp.10 billion from profit or capital disbursement to increase the company’s deposited capital. The company has committed to support government plans to raise the insurance industry’s capital level. In October 2006, AJP’s management hopes to receive a capital disbursement of Rp.5 billion to strengthen its capital level after having received the same amount of capital earlier this year. By the end of the year 2006, AJP, with its total equity of Rp.43 billion, projects to book Rp.30 billion in deposited capital. However, the company has yet any plan to go public as investors are currently uninterested with insurance companies’ stocks. This year, the company aims to book Rp.20 billion in profit, which is higher than 2005’s Rp.14.81 billio. It also aims to receive Rp.300 billion from premium, which is a 46.6 percent increase from last year’s obtained premium. AJP hopes to fulfil the target by depending upon marine cargo, automotive and fire insurance. Last year, marine cargo contributed 46.3 percent to total premium income, whilst automotive contributed 32.97 percent and fire insurance 20.25 percent. Last year, AJP covered a Rp 4.9 billion claim for PT Roran Inti Manunggal’s arson case. Jaya Proteksi’s risk based capital (RBC) per March 2006 was 222.1 percent, which exceeded the government regulated 120 percent RBC.