General insurance displays stronger interest on Sharia

JAKARTA: General insurance companies intend to further foster its Sharia unit as it contributes premium growth over the past few years.The Sharia unit of PT Asuransi Tri Pakarta (Tripa) recorded IDR14 billion in the first half this year or soared by 109% compared to the same period last year.The company is eyeing IDR20 billion of premium contribution in 2011, said Tripa Operating Director GMS Poetiray.When it was firstly established, the growth of Sharia unit is relatively slow. Nevertheless, when it grows, it affects the insurance in general. So, there is an opportunity to soar, he said this week.In the meantime, sharia unit of PT Asuransi Astra Buana booked IDR86.6 billion premium revenue in 2010 or surged by 56% compared to the year earlier at IDR55 billion.The company expects its Sharia unit to record 40% growth this year, merely to raises the contribution to the total premium revenue, said Asuransi Astra Marketing Director Hendry Yoga.People awareness to shift to Sharia insurance is escalating. We will also bolster partnership with Sharia-based financing company, he said.Spin offAsuransi Tripa plans to split its Sharia unit before 2014. The general insurance whose majority stocks controlled by Dana Pensiun BNI, owns Sharia unit since 2002.This spin off relates to the regulation that obliges insurance companies owning Sharia unit to separate its business unit by 2014, said Poetiray.We are now reviewing the right moment to realize spin off. One thing for sure it will be realized before 2014, he said.The company will raise its capital by IDR25 billion to meet the minimum reserve requirement for Sharia insurance of IDR50 billion before 2014. Yet, he cannot ensure when and how the capital is secured.On the other hand, Hendry said that Asuransi Astra is yet to realize a spin off next year.We will follow the regulation that obliges us to hold spin off. I dont see any problem if the company must raise its capital. (19) (t02/msw)