JAKARTA: PT Asuransi Bintang Tbk, a general insurance company, will increase retail business portion to 50% next year from previously 40% to balance its business portfolio.
The business portfolio, which is currently dominated by corporate segment, is increasingly competitive with a narrow margin rate, Asuransi Bintang Sales and Marketing Director Reni Darmakusuma said.
“Currently, corporate segment has 60% portion, while retail 40%. The retail portion would be increased to be equal with corporate segment in the next year,” she said yesterday.
Asuransi Bintang will be more focus on developing the retail segment through the tailor-made products sales as well as products which are made by adjusting to customer needs.
According to Asuransi Bintang President Director Zafar Dinesh Idham, the company’s is eyeing IDR200 billion premiums at the end of the year or grew 19% compared to last year's.
“Miscellaneous and vehicle insurance still have a good margin. We will increase the vehicle insurance portion to 35%,” Reni said.
The company booked IDR133 billion premiums until September 2011, grew 15.88% from the same period a year earlier. Thus, the company is eyeing IDR67 billion premiums in the next 3 months this year to achieve the target of IDR200 billion.
Property protection business contributes 40% to the premium gain, followed by miscellaneous, engineering, and cargo protection with 33%, and vehicle protection 27%.
Asuransi Bintang’s operating income reached IDR4 billion until the end of September, which grew from the same period last year when it recorded operating loss of IDR10.4 billion.
Reni expected the operating income may reach IDR2 billion by the end of this year after booking IDR9 billion loss last year. Meanwhile, earnings before taxes will likely post IDR6 billion from loss before taxes IDR5.7 billion last year.
At the same period, the company recovered negative non-premium revenue of IDR11.7 billion last year, to IDR500 million profits. “The profit was primarily due to the increased underwriting results and lower operating expenses,” she said.
Its underwriting result grew 60% to IDR32 billion compared to the same period last year. Such underwriting reached 24.7% of the gross premiums.
According to her, this year’s underwriting result is the best achievement in the last 10 years. “There is an increase of premium reserve around IDR5.3 billion, which is an expense.” (t06/ags)