Axa Mandiri Weighted Premium Up 71.86%

Unit-linked insurance plan contributed the highest at 87 percent to AXA Mandiri’s total premium revenue. (IFT/DINUL MUBAROK)

JAKARTA (IFT) - PT AXA Mandiri Financial Services, a large-scale life insurance subsidiary of PT Bank Mandiri Tbk (BMRI), posted a 71.86 percent growth in its new business’ weighted premium to Rp 1.44 trillion in the first semester of 2011 from Rp 837.7 billion year-on-year (YOY) 2010 mainly attributable to its regular premium revenue.

Weighted premium is a parameter to measure an insurer’s potential operating income pattern calculated from its new business’ single and regular premium. High weighted premium shows insurer’s high potential operating income.

Iwan S Pasila, Finance Director of AXA Mandiri, said that most of its premium was from regular payments. Its weighted regular premium grew 70.99 percent to Rp 1.41 trillion in the first semester of 2011 from Rp 823.4 billion YOY.

Single premium contribution to total weighted premium as of the first semester was at Rp 31 billion, up 116.76 percent from Rp 14.3 billion YOY.

Total premium revenue rose 82.83 percent to Rp 2.45 trillion in the first semester of 2011 from Rp 1.34 trillion due largely to bancassurance distribution.

Albertus Wiroyo, President Director of AXA Mandiri, said that bancassurance contributed 87 percent to total premium revenue, while telemarketing accounted for 13 percent. Its total financial advisors were 1,800 employees in 1,100 branch offices of Bank Mandiri. Telemarketing personnel consist of 250 employees.

Unit-linked insurance plan contributed the highest at 87 percent to its total premium revenue. Traditional products contributed 13 percent. "We will increase traditional premium contribution to 25 percent in a few years ahead," Albertus said.

Higher Assets

AXA Mandiri's total assets grew 46.87 percent to Rp 10.12 trillion in the first half from Rp 6.89 trillion YOY. Around Rp 9.49 trillion of said assets were put in as investment fund, up 47.58 percent from Rp 6.43 trillion in the same period last year.

Around Rp 8.2 trillion of the investment fund were from unit-linked insurance plan. Around Rp 5.5 trillion of which were invested in stocks and the remaining in other capital market instruments and deposits. Axa Mandiri saw a 97.87 percent surge in net income to Rp 353.8 billion as of June 2011 from Rp 178.8 billion YOY.