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AXA Mandiri eyes double-digit growth in premium income
AXA Mandiri Financial Services (AXA Mandiri), one of Indonesia’s major insurance companies, expects to maintain double-digit growth in premium income this year as it taps into the large customer base of its parent company, Bank Mandiri, to attract new policyholders
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XA Mandiri Financial Services (AXA Mandiri), one of Indonesia’s major insurance companies, expects to maintain double-digit growth in premium income this year as it taps into the large customer base of its parent company, Bank Mandiri, to attract new policyholders.
AXA Mandiri president director Handojo G. Kusuma said in Jakarta on Tuesday that the insurer would market its products more intensively to customers of Bank Mandiri, which had one of the largest customer bases in the country.
"We hope to book double-digit growth in premium income by tailoring insurance products to the special needs of Bank Mandiri customers,” he told a press briefing.
AXA Mandiri is jointly owned by Bank Mandiri, which has a 51 percent stake, and AXA Group’s National Mutual International Pty. Ltd, which holds 49 percent.
AXA Mandiri booked gross premium income of Rp 9.5 trillion (about US$698.5 million) in 2019, an 11 percent increase from Rp 8.59 trillion in 2018, while its net investment reached Rp 668 billion in 2019 following a deficit of Rp 1.68 trillion in 2018.
As a result, revenue totaled Rp 10.74 trillion in 2019, a 44 percent year-on-year increase.
Handojo said AXA Mandiri had recorded a net profit of Rp 1 trillion in 2019, up 6 percent from Rp 946.6 billion recorded in the preceding year.
“AXA Mandiri will also focus more on offering protection solutions to the public. Our focus will be on how to meet our customers’ needs, create innovative products and create added value for our customers,” he said.
To realize the targeted double-digit growth in premium income, AXA Mandiri conducted a data analytics study on Bank Mandiri’s market segmentation.
“By understanding the needs of each segment better, we will be able to improve upselling and cross-selling,” Handojo said, adding that, despite having worked together with Bank Mandiri for many years, AXA Mandiri’s penetration among the bank’s clients was still suboptimal.
To tap into the market potential of the millennials (also known as Generation Y), the company would study the behavior and characteristics of customers in that segment and offer an affordable and easy-to-understand retail package that would be relevant and convenient for millennial buyers, Handojo explained.
For the growing halal market, the company planned to expand its portfolio of sharia-compliant products to between 20 percent and 25 percent of its business in the upcoming year from 4 to 5 percent at present.
“If we look at the market share potential, we can say that 90 percent of Indonesians are Muslims, [hence] we will continue to grow our sharia business,” AXA Mandiri sales director Henky Oktavianus said on Tuesday.
Henky added that the company was still studying the sharia market segmentation of its sister company, Bank Syariah Mandiri, to understand what products to offer its clients and how best to sell them.
In 2019, AXA Mandiri saw an 11 percent growth in total assets to Rp 32.75 trillion from Rp 29.58 trillion in 2018. Its total equity climbed 28 percent to Rp 2.9 trillion last year from Rp 2.28 trillion the year before.
AXA Mandiri also showed that its creditworthiness should not be doubted, as it listed its solvency ratio, calculated using the risk-based capital method, at 591 percent, while the Financial Services Authority requires a minimum of 120 percent. (ydp)
