The decision is a reflection of the government commitment ..."Jakarta (ANTARA News) - The government has officially combined two state-owned reinsurance companies PT Reasuransi Umum Indonesia and PT Reasuransi Indonesia Utama.
The merged company with documents signed on Friday, would be named Indonesia-Re starting next year.
President Director of Indonesia-Re Frans Y. Sahusilawane said the merger is aimed at creating a big and strong Indonesian reinsurance company.
"After the process of merger, Indonesia-Re will sgtart consolidation of its business lines and improve reinsurance services with information technology," Frans said.
He said Indonesia-Re is expected to record Rp5 trillion in premium in 2016 with net profit estimated at Rp1 trillion.
"This year (2015) the premium (of the two companies) is expected to reach around Rp2.5 trillion with net profit estimated at Rp500 billion," he said.
Minister for State Enterprises Rini Soemarno described the merger of the two state a historic momentum for the countrys re-insurance industry.
"The decision is a reflection of the government commitment to creating a big and powerful national reinsurance company, regionally and globally competitive," Rini said.
She said the road map of the national reinsurance company is clear with the government wrapping up the first phase that is to establish a reinsurance parent company - Indonesia-Re with two subsidiaries , loss insurance companies, PT Asuransi ASEI Indonesia and ReIndo Syariah.
The next phase is to merge business portfolio of Nasional Indonesia Reasuransi (Nasre) into Indonesia-Re.
An executive of the Financial Service Authority (OJK) Firdaus Djaelani said the merger of the two companies could increase the capacity of state owned reinsurance industry.
Firdaus said so far reinsurance premiums worth Rp30 trillion a year flowed out of the country.
"Therefore, we need to expand the capacity of our reinsurance industry by phases to reduce deficit in premium," he said.
(Uu.H-ASG/A014)
Editor: Priyambodo RH
Copyright © ANTARA 2015
