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Asuransi MAG sets moderate growth target post-Fairfax acquisition
Publicly listed general insurer Asuransi Multi Artha Guna (MAG) is expecting moderate net premium income growth at a range of 15 to 20 percent in 2017 by focusing on new products following the company’s acquisition by Canadian financial holding firm Fairfax.
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Join forces: Hong Kong-based insurance company Fairfax Asia Ltd chairman Ramaswamy Athappan (left) and publicly listed insurance firm Asuransi Multi Artha Guna president director Linda Juliana J.L. Delhaye prepare for a press briefing on Monday in Jakarta. (JP/Anton Hermansyah)
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ublicly listed general insurer Asuransi Multi Artha Guna (MAG) is expecting moderate net premium income growth at a range of 15 to 20 percent in 2017 by focusing on new products following the company’s acquisition by Canadian financial holding firm Fairfax.
President director Linda Juliana J.L. Delhaye said the company would offer a number of new products, such as travel, health, and loan insurance, in addition to its existing vehicle and property insurance schemes. The products would mainly be sold under bancassurance partnerships.
"After the acquisition, we will get expertise and knowledge transfer from Fairfax, then we can create new products in a more efficient way," she said on Monday.
In October, Hong Kong-based Fairfax Asia Ltd., a subsidiary of the Fairfax Group that manages its operations in Asia, completed an 80 percent purchase of Asuransi MAG's shares from Panin Group in a US$165 million deal. Panin retained 11.52 percent in the company, while the remaining 8.48 percent was owned by the public.
In the third quarter, Asuransi MAG saw its net premium income dropped by 9.6 percent year-on-year (yoy) to Rp 402.01 billion ($29.9 million). The company has attributed the decline to bigger reinsurance premiums it had to pay.
Fairfax Asia Ltd. chairman Ramaswamy Athappan, meanwhile, hinted that Asuransi MAG would carry out more aggressive expansion, as he wanted the company to increase its income from premiums fivefold in the next four years. (hwa)
