MIRA INFORM REPORT

Report No. :	485365
Report Date :	17.01.2018

IDENTIFICATION DETAILS

Name :	P.T. ASURANSI SINAR MAS
Formerly Known As :	P.T. ASURANSI KERUGIAN SINAR MAS DIPTA
Registered Office :	Plaza Sinar Mas (Plaza Simas), Jl. K.H. Fachrudin No. 18, Jakarta 10250
Country :	Indonesia
Financials (as on) :	30.09.2017
Date of Incorporation :	30.08.1984
Com. Reg. No.:	AHU-AH.01.03-0136712
Legal Form :	P.T. (Perseroan Terbatas) or Limited Liability Company
Line of Business :	General Insurance Services
No. of Employees :	1,285

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Indonesia	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

INDONESIA - ECONOMIC OVERVIEW

Indonesia, the largest economy in Southeast Asia, has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. Indonesia’s annual budget deficit is capped at 3% of GDP, and the Government of Indonesia lowered its debt-to-GDP ratio from a peak of 100% shortly after the Asian financial crisis in 1999 to less than 27 percent today. While Fitch and Moody's Investors upgraded Indonesia's credit rating to investment grade in December 2011, Standard & Poor’s has yet to raise Indonesia’s rating to this status amid several constraints to foreign direct investment in the country, such as a high level of protectionism.

Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among its regions. President Joko WIDODO - elected in July 2014 – seeks to develop Indonesia’s maritime resources and pursue other infrastructure development, including significantly increasing its electrical power generation capacity. Fuel subsidies were significantly reduced in early 2015, a move which has helped the government redirect its spending to development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration has not yet materialized.

Source : CIA

Name of Company

P.T. ASURANSI SINAR MAS

Address

Head Office

Plaza Sinar Mas (Plaza Simas)

Jl. K.H. Fachrudin No. 18

Jakarta 10250 – Indonesia

Phones - (62-21) 390 2141, 5050 9888

Fax - (62-21) 390 2159 – 60

Email - info@sinarmas.co.id

Building Area - 12 storey

Office Area - 1,250 sq. meters

Region - Commercial

Status - Owned

Company summary

Date of Incorporation :

a. 30 August 1984 as P.T. ASURANSI KERUGIAN SINAR MAS DIPTA

b. 30 November 1991 as P.T. ASURANSI SINAR MAS

Legal Form :

P.T. (Perseroan Terbatas) or Limited Liability Company

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C2-1793.HT.01.01.TH.85

Dated 01 April 1985

b. No. C2-6188.HT.01.04.Th.94

Dated 20 April 1994

c. No. AHU-85016.AH.01.02.Tahun 2008

Dated 12 November 2008

d. No. AHU-AH.01.03-0929872

Dated 06 May 2015

e. No. AHU-AH.01.03-0136712

Dated 17 May 2017

Company Status :

National Private Company

Permit by the Government Department :

The Department of Finance

NPWP No. 01.391.149.0-073.000

Related/Affiliated Company :

A Member Company of the SINAR MAS Group

CAPITAL AND OWNERSHIP

Capital Structure :

Authorized Capital - Rp. 400,000,000,000.-

Issued Capital - Rp. 200,000,000,000.-

Paid up Capital - Rp. 200,000,000,000.-

Shareholders/Owners :

a. P.T. SINAR MAS MULTIARTHA TBK - Rp. 199,998,000,000.- (99.999%)

b. P.T. SINAR MAS MULTIFINANCE - Rp. 2,000,000.- ( 0.001%)

BUSINESS ACTIVITIES

Lines of Business :

General Insurance Services

Production Capacity :

None

Total Investment :

Equity Capital - Rp. 2,660.4 billion

Started Operation :

1983

Brand Name :

SIMAS Insurance

Technical Assistance :

None

Number of Employee :

1,285 persons

Marketing Area :

Local - 100%

Main Customer :

Corporate and Individual

Market Situation :

Very Competitive

Main Competitors :

a. PT. Asuransi Central Asia

b. PT. Asuransi Manulife Indonesia

c. PT. Asuransi Ramayana Tbk.

d. PT. Asuransi Winterthur Life Indonesia

e. PT. Asuransi Wahana Tata

Business Trend :

Growing

BANKER, AUDITOR & LITIGATION

Banker :

a. P.T. Bank SINAR MAS Tbk

Jalan M.H. Thamrin No. 51

Jakarta Pusat

Indonesia

b. P.T. Bank MANDIRI Tbk

Jalan M.H. Thamrin No. 5

Jakarta Pusat

Indonesia

c. P.T. Bank NEGARA INDONESIA Tbk

Wisma 46-Kota BNI

Jalan Jend. Sudirman Kav. 1

Jakarta Pusat

Indonesia

Auditor :

Mulyamin Sensi Suryanto & Lianny

Litigation :

No detrimental filling was recorded at the local court

FINANCIAL FIGURE

Total Gross Premiums :

2013 – Rp. 3,657.2 billion

2014 – Rp. 4,141.3 billion

2015 – Rp. 4,228.9 billion

2016 – Rp. 4,605.3 billion

2017 – Rp. 3,987.3 billion (as of 30 September 2017)

Net Profit (Loss) :

2013 – Rp. 276.5 billion

2014 – Rp. 451.7 billion

2015 – Rp. 468.2 billion

2016 – Rp. 482.8 billion

2017 – Rp. 281.6 billion (as of 30 September 2017)

Total Assets :

2013 – Rp. 5,680.8 billion

2014 – Rp. 6,457.2 billion

2015 – Rp. 6,176.8 billion

2016 – Rp. 5,894.3 billion

2017 – Rp. 6,568.6 billion (as of 30 September 2017)

Payment Manner :

Regular

Financial Comments :

Strong and sound

KEY EXECUTIVES

Board of Management :

President Director - Mr. Howen Widjaja

Directors - a. Mr. Njoman Sudartha

b. Mr. Aryanto Alimin

c. Mrs. Dumasi Marisina Magdalena Samosir

d. Mr. Marten Petrus Lalamentik

e. Mr. I Ketut Pasek Swastika

Board of Commissioners :

President Commissioner - Mr. Indra Widjaja

Vice President Commissioner - Mrs. Ivena Widjaja

Independent Commissioners - a. Mr. Sinarta Ginardi

b. Mr. Petrus Kiki Andries

Signatories :

President Director (Mr. Howen Widjaja) or one of the Directors (Mr. Njoman Sudartha, Mr. Aryanto Alimin, Mrs. Dumasi Marisina Magdalena Samosir, Mr. Marten Petrus Lalamentik or Mr. I Ketut Pasek Swastika) which must be approved by Board of Commissioner (Mr. Indra Widjaja or Mrs. Ivena Widjaja)

CAPABILITIES

Management Capability :

Good

Business Morality :

Good

OVERALL PERFORMANCE

Originally named P.T. ASURANSI KERUGIAN SINAR MAS DIPTA, the company was established in Jakarta based on Notary Deed No. 162 dated August 30, 1984 drawn up by Notary Benny Kristianto, SH., with an authorized capital of Rp. 1,000,000,000.- entirely was issued and fully paid up. The founding shareholders of the company are Mr. Indra Widjaja (20%), Mr. Muktar Widjaja (20%), Mr. Djafar Widjaja (20%), Mr. Rudy Maeloa (20%) and Mr. Oesman Widjaja (20%). They are Indonesian businessmen of Chinese extraction. The deed of establishment was approved by the Ministry of Justice and Human Rights in its decision letter No. C2-2793.HT.01.01.Th.85 dated April 1, 1985. The Company’s article of association has been amended for several times. On November 30, 1991 the company’s name was changed to P.T. ASURANSI SINAR MAS.

In 2008, based on Notary Deed of Popie Savitri Martosuhardjo Pharmanto, SH., No. 62 dated August 14, 2008 the authorized capital was raised to Rp. 400,000,000,000.- of which Rp. 200,000,000,000.- was issued and fully paid up. Since then, the shareholders of the company are P.T. SINAR MAS MULTIARTHA Tbk. Tbk. (99.999%) and P.T. SINAR MAS MULTIFINANCE (0.001%). The amendment to Deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-85016.AH.01.02.Tahun 2008 dated November 12, 2008. In 2015 based on Notary Deed of Eria Heryanti Poerwandini, SH., No. 001 dated 05 May 2015, concerning the change in composition of the Company’s board of Commissioners and Directors. This amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. AHU-AH.01.03-0929872 dated May 6, 2015.

The most recently by Notary Deed of Eria Heryanti Poerwandini, SH., No. 001 dated 05 May 2017, concerning the reappointment in composition of the Company’s board of Commissioners and Directors. This amendment to Deed has been approved by the Minister of Law and Human Rights of the Republic of Indonesia through its Decree No. AHU-AH.01.03-0136712 dated May 17, 2017.

P.T.ASURANSI SINAR MAS (P.T. ASM) has been operation since 1985 dealing with general insurance services. The company operates a head office located at Plaza Simas, Jalan K.H. Fachrudin No. 18, Central Jakarta and more than 30 branch offices located in Bandung, Balikpapan, Banjarmasin, Batam, Bekasi, Bogor, Cirebon, Jakarta, Jambi, Lampung, Makassar, malang, Medan, Manado, Padang, Palembang, Pekanbaru, Pontianak, Samarinda, Semarang, Surabaya, Solo, Tanggernag and Yogyakarta. In addition, P.T. ASM also operates 3 Syariah branch offices, 71 marketing offices and 107 point marketing offices. Insurance services offered by P.T. ASM ranging from Property Insurance, Marine (freight), Engineering (engineering), Bonding (underwriting), Accident and Health, Motor vehicles, Responsibility (liability) and miscellaneous. In addition P.T. ASM also have new products such as insurance protection in immediate termination of Employment Relations (PHK), insurance for small and medium enterprises (UKM) for the protection of UKM loans, Bike Insurance motor vehicles, insurance Expatriate, Insurance hole in one and Insurance Golf Insurance, Insurance Healthy Income and others.

The operation of the company has been growing in the last five years. This condition can be seen from total investment by the company in 2014 amounted to Rp. 3,849.4 billion increased to Rp. 4,265.5 billion in 2015 to Rp 4,405.4 billion in 2016 and rose again to Rp. 4,796.1 billion as of 30 September 2017. We observed that P.T. ASM is classified as a large-sized company of its kind in the country of which the operation has been growing in the last three years.

According to the financial report audited by public accountant (Mirawati Sensi Idris) the total gross premiums of PT. ASM in 2014 amounted to Rp 4,141.3 billion with a net profit of Rp 451.7 billion increased to Rp 4,228.9 billion with a net profit of Rp 468.2 billion in 2015 to Rp. 4,605.3 billion with a net profit of Rp. 482.8 billion in 2016 and to Rp. 3,987.3 billion with a net profit of Rp. 281.6 billion in as of 30 September 2017. Financial Statement of P.T. ASM as of 31 December 2014, 2015, 2016 and as of 30 September 2017 attached. So far we did not hear that P.T. SMM has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.

The management of P.T. ASM is led by Mr. Howen Widjaja (39), a professional manager with more than 9 years of experience in general insurance services. He served as a Commissioner at PT Sinar Mas Multiartha Tbk since June 2009. Mr. Widjaja graduated of MBA from St. John's University in 2007. In his daily operation he is assisted by five directors namely Mr. Njoman Sudartha (53), Mr. Aryanto Alimin (53), Mrs. Dumasi Marisina Magdalena Samosir (54), Mr. Marten Petrus Lalamentik (52) and Mr. I Ketut Pasek Swastika (63). The company’s management is also assisted by a number of experienced professional managers in this business, having maintained a wide business relation among private businessmen at home and abroad as well as among government authorities.

We are convinced that P.T. ASURANSI SINAR MAS is fairly good for normal business transaction.

Attachment:

P.T. ASURANSI SINAR MAS

FINANCIAL STATEMENTS

Per 31 December 2014, 2015, 2016 and as of 30 September 2017

(in million Rupiah)

DESCRIPTION	30 September 2017	31 December
		2016	2015	2014
ASSETS
a. Investment
- Time deposits	805,075	718,620	940,660	1,521,021
- Share	197,048	279,081	439,929	40,410
- Corporate bonds and sukuk	23,030	17,908	93,049	30,713
- Securities guaranteed by the Government	27,445	199,060	--	995
- Securities guaranteed by Bank of Indonesia	--	--	--	--
- Mutual funds	2,723,305	2,501,117	2,158,285	2,004,799
- Direct investment	781,988	543,644	523,339	227,038
- Land and buildings for investment	3,166	3,586	4,149	4,711
- Purchase of receivables to a finance company or bank	196,000	96,000	60,000	--
- The loans are secured with the right insurance	39,005	46,343	46,102	19,670
Total Investment	4,796,062	4,405,359	4,265,513	3,849,357
b. Non Investment
- Cash and bank	58,035	40,848	66,019	16,477
- Direct closing of premium receivables	444,973	340,119	439,100	710,710
- Reinsurance receivable	61,495	64,961	123,094	221,625
- Reinsurance Assets	814,859	655,089	912,332	1,178,833
- Investment receivable	1,090	49,958	72,764	8,981
- Other receivable (bill on investment)	1,919	4,832	1,656	3,791
- Land and buildings for own use	183,828	187,512	186,442	189,359
- Other fixed assets	13,839	15,616	17,086	20,229
- Other assets	192,494	129,957	92,812	257,836
Total Non Investment	1,772,532	1,488,892	1,911,305	2,607,841
TOTAL ASSETS = LIABILITIES AND EQUITY	6,568,594	5,894,251	6,176,818	6,457,198
LIABILITIES
Payable/Debt
- Claims payables	44,889	34,147	33,630	32,485
- Co-insurance payables	43,510	55,610	39,903	81,589
- Reinsurance payable	107,198	161,611	196,492	395,797
- Commission liabilities	85,000	55,765	86,326	82,371
- Taxes liabilities	3,741	13,568	10,501	10,872
- Accrued liabilities	5,436	5,341	3,583	7,987
- Other payables	304,551	272,614	225,145	214,481
- Insurance liabilities	3,002,935	2,591,131	2,920,851	3,442,727
Total Liabilities	3,597,260	3,189,789	3,516,431	4,268,309
EQUITY
- Paid up capital	200,000	200,000	200,000	200,000
- Additional paid in capital	2,632	2,632	996	996
- Other equity components	(49,422)	(34,714)	(25,820)	(25,816)
- Retained earning	2,818,124	2,536,544	2,485,211	2,013,709
TOTAL EQUITY (DEFICIT)	2,971,334	2,704,462	2,660,387	2,188,889
INCOME STATEMENTS
Underwriting Income
- Total Gross Premiums	3,987,292	4,605,278	4,228,862	4,141,336
- Reinsurance Premiums	(2,489,633)	(2,577,217)	(2,409,848)	(2,232,109
- Net Premiums	1,549,863	2,028,061	1,819,014	1,909,227
- Decrease (increase) CAPYBMP	(141,094)	(18,961)	43,574	(38,297)
- Premium income - net	1,408,769	2,009,100	1,862,588	1,870,930
- Other premium income	53,181	61,123	62,365	39,361
Total Underwriting Income	1,461,950	2,070,223	1,924,953	1,910,291
Underwriting Expense
- Total Expense claims	(873,474)	(1,219,508)	(1,138,326)	(1,242,759)
- Other expense claims, net	(4,242)	(4,606)	(3,554)	(3,162)
Total Underwriting Expense	(877,716)	(1,224,114)	(1,141,880)	(1,245,921)
Underwriting Results	584,234	846,109	783,073	664,370
Investment Returns	253,505	337,428	367,709	278,467
Total operating expenses	(561,174)	(673,997)	(648,264)	(511,606)
Income (loss) insurance business	276,565	509,540	502,518	431,231
Other benefit (expense)	5,014	7,481	(5,269)	14,782
Profit (loss) before zakat	281,579	517,021	497,249	446,013
Zakat expanses	--	(1,410)	(1,156)	(860)
Profit (loss) before tax	281,579	515,611	496,093	445,153
Tax expanses (benefit)	--	(32,793)	(27,888)	6,570
Net profit	281,579	482,818	468,205	451,723

Remarks: Audited by Mirawati Sensi Idris (Registered Public Accountants)

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.76
UK Pound	1	INR 87.91
Euro	1	INR 78.20
IDR	1	INR 0.0045

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	SYL

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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