Allianz sees big growth in RI, Asia-Pacific

Rita A. Widiadana, The Jakarta Post, Nusa Dua

Germany-based insurance and financial services provider Allianz Group sees its businesses in Asia-Pacific growing rapidly this year on the back of the region's robust economy, with China and India serving as the driving forces.

"Allianz Group has seen a strong performance in the Asia-Pacific region and worldwide," said Dr. Werner Zedelius, a member of the Board of Directors of Allianze SE, during his closing address to a meeting of the CEOs of Allianz offices in the Asia-Pacific countries Wednesday. The meeting was held in Nusa Dua, Bali.

The company's growth written premium (GWP) income in Asia increased about 70 percent. However, "even if we exclude China and India, growth is still very high at 24 percent," Zedelius said.

Worldwide, the group booked an operating profit of 10.386 billion euros in 2006 as compared to 8.003 billion euros in 2005, while 2006 net income amounted to 7.02 billion euros.

In the Asia-Pacific region, Allianz operates in 14 countries, including China, India, Singapore and Indonesia.

Bruce Bowers, Allianz's CEO Asia Pacific, said that the company had great belief in the region's potential. "We have been a long-time investor in the region and we believe and are very optimistic about economic conditions here."

Allianz Group first set up shop in Indonesia in 1981.

Eight years later, Allianz established PT Asuransi Allianz Utama as a general insurance provider. In l996, Allianz set up PT Asuransi Allianz Life Indonesia, which offers life and health insurance, savings and pension plans.

"As a whole, Allianz Life Indonesia has had an excellent year, and in the first quarter of 2007, our profit more than doubled compared to the same period last year," explained Jens Reisch, president director of PT Asuransi Allianz Life Indonesia.

As of the end of December 2006, Allianz Life had achieved GWP income of Rp 1.3 trillion with 360,000 policyholders. Currently, it has 80 agency offices in 44 cities and regions around the country, including Bali.

"We plan to open new offices in Banda Aceh and Ambon soon," Reisch said.

Meanwhile, PT Asuransi Allianz Utama Indonesia has 38,000 customers with GWP income of Rp 615 billion as of the end of 2006.

For Allianz Utama, the first quarter of 2007 was overshadowed by a number of natural disasters that resulted in a significant rise in claims.

"We have gone through hard times in this first quarter, such as the floods in Jakarta and other calamities," said Victor Sandjaja, president director of Allianz Utama.

"But we are now on the right track with our premiums target as our GWP increased by more than 5 percent during the first quarter compared to the same period last year, generating Rp 3 billion in profit before tax," Sandjaja said.