Allianz local units posts lower profit

The Jakarta Post , Jakarta | Thu, 08/28/2008 10:10 AM | Business

Germany-based Allianz Group's Indonesia units both recorded 10-percent drops in pre-tax profits during the first half of the year on lower premium investment.

PT Allianz Life, a life and health insurer, booked Rp 37 billion (US$4 million) in pre-tax profit between January and June this year, down from Rp 41 billion in the same period last year, according to a report Wednesday.

The company's claims jumped 51 percent to Rp 380 billion from Rp 252 billion at the same time last year.

"The decline in profit is not because of claim spending but due to lower investment as a result of global economic uncertainty," said Allianz Life president director Jens Reisch.

"Another contribution to lower profit is the company's spending on its new one-stop outlet (project), which costs Rp 15 billion," he added.

This year, Allianz plans to open one-stop Allianz Centers in three big cities -- Samarinda in East Kalimantan, Medan in North Sumatra and Balikpapan in West Kalimantan.

Despite a 30 percent jump in annualized new premium to Rp 417 billion from Rp 320 billion, the company's gross written premium grew sluggishly by 1 percent to Rp 1.25 trillion from Rp 1.24 trillion.

The company enjoyed a 14 percent increase in policy holders to 584,686 from 513,442.

Allianz Group's other local unit, PT Allianz Utama, which offers insurance on property, vehicles, engineering, casualties and marine cargo, recorded a decrease in pre-tax profit to Rp 27.3 billion from Rp 30.3 billion.

The company's claims also jumped 87 percent to Rp 109.1 billion from Rp 58.3 billion.

Allianz did not provide any explanation for the soaring number of claims.