The Jakarta Post
Publicly listed insurer PT Victoria Insurance has posted Rp 2.33 billion (US$174,793) profit before taxes in the first quarter of 2017, a 42.62 percent decrease compared to the Rp 4.05 billion in the same period last year.
The decline was mainly caused by a rise in its gross claims from Rp 2.4 billion in 2016 to Rp 4.1 billion this year, said the company’s president director Loekito Saggitariono on Thursday.
“The gross claim increase has driven us to reserve premiums of Rp 3.6 billion to be used as back up funds for disbursement for possible claims,” Loekito said.
The company booked Rp 11.81 billion in gross premiums in the first quarter of 2017, a slight increase from Rp 11.50 billion booked in the same period last year.
Loekito, however, expressed his optimism that his company would achieve its target of booking Rp 9 billion in profits by the end of 2017.
“The first quarter indeed was a bad situation for insurance companies. We really do hope for an improvement in the fourth quarter, which usually contributes around 35 percent, according to portfolio ratios,” Loekito said.
The company will inaugurate a new marketing branch in Semarang, Central Java, which is expected to contribute around Rp 3 billion this year, he added.
The company aims to book Rp 120 billion in premiums by the end of 2017, a 60 percent increase from the figure in 2016. (yon/bbn)