Life insurer PT Asuransi Jiwa Manulife Indonesia, the local unit of Canadian financial services firm Manulife Financial Corp., saw an overturn in its business last year as it managed to book higher new business premiums.

Manulife — the businesses of which range from insurance to asset management — posted new business premiums of Rp 3.7 trillion (US$277.5 million) in 2016, rising by 27.6 percent year-on-year (yoy).

The result overturned its performance in 2015, when the new business premiums fell 9.4 percent yoy.

Manulife Indonesia director and chief financial officer Colin Startup said Tuesday that the result was supported by its wide distribution channels, agency teams, as well as pension and asset management businesses.

Its partnership business accounted for the largest contribution to the new business premiums with 35 percent, followed by pension with 30 percent, agency and subsidiary PT Manulife Asset Management Indonesia (MAMI) with 16 percent each, and group life and health with 3 percent.

Startup also attributed the growth of new business premiums to the improvement of Indonesia’s macroeconomic conditions.

The gross domestic product (GDP) climbed to 5 percent from 4.9 percent in 2015, inflation remained low at 3 percent and import and export activities increased, supported by higher commodity prices.

However, despite the positive result in new business premiums, Manulife’s net profit plummeted significantly by more than 83 percent to Rp 328.81 billion last year.

Its annual report also shows a 44 percent decline to Rp 664.48 billion in terms of comprehensive income in 2016.

Startup claimed the profitability crunch was caused by the differences between its liabilities and assets.

“Our assets are valued using current rates. We invest a lot in fixed income, government bonds […] and they move up and down, in line with interest rates,” he said. On the other hand, its liabilities are valued using the three-year average rate of government bonds.

The company also attributed the fall to the foreign exchange rate and new products, which Manulife Indonesia director and chief transformation officer Yosie Iroth said had burdened its capital.

It enjoyed currency gain from investing in US dollar in 2015. However, as the rupiah stabilized against the greenback, the company did not reap a similar gain last year.

Going forward, Manulife says it aims to enhance the potential of its partnership business by collaborating with banking and non-banking institutions.

The partnerships have provided Manulife with access to more than 11 million customers across Indonesia, which it claims as crucial to accelerate growth.

At present, Manulife collaborates with private lender Bank Danamon to sell credit life products through automotive financing firm PT Adira Dinamika Multi Finance, a Danamon subsidiary with over 5.7 million customers. It has also partnerships with financing firm PT BCA Finance and sharia lender Bank Muamalat.

“We already have three very important strategic partners. We see opportunities to grow with our existing partners. If there are opportunities [to collaborate with new partners], we will consider them,” Startup said.

By the end of 2016, Manulife booked consolidated assets under management of Rp 55.8 trillion, 11 percent higher compared to 2015.

The company serves more than 2.3 million customers through a network of more than 9,000 employees and agents across the archipelago.

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