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PT ASURANSI JIWA SINARMAS MSIG (formerly PT Asuransi Jiwa Sinarmas) TABLE OF CONTENTS Page The Directors’ Statement on the Responsibility for the Financial Statements of PT Asuransi Jiwa

Sinarmas MSIG as of September 30, 2011 and 2010 and December 31, 2010 and for the NineMonth Periods Ended September 30, 2011 and 2010

Independent Accountants’ Review Report 1 FINANCIAL STATEMENTS - As of September 30, 2011 and 2010 and December 31, 2010 and for

the nine month periods ended September 30, 2011 and 2010

Statements of Financial Position 2 Statements of Comprehensive Income 3 Statements of Changes in Equity 4 Statements of Cash Flows 5 Notes to Financial Statements 6

PT ASURANSI JIWA SINARMAS MSIG (formerly PT Asuransi Jiwa Sinarmas)Statements of Financial PositionSeptember 30, 2011 and 2010 and December 31, 2010

December 31,Notes 2011 2010 2010

Rp '000 Rp '000 Rp '000

ASSETS

InvestmentsTime deposits 2c,2d,2g,3,4,19,29,32 6,123,712,709 335,653,096 60,865,000Financial assets at fair value through profit and loss 2c,2d,2g,4,19,29,32 7,666,907,598 2,024,091,878 2,089,087,518Available for sale securities 2g,4,19,32 44,697,953 667,336,000 691,698,013Held to maturity financial assets 2c,2g,4,19,32 470,376,125 484,833,632 485,885,678Mortgage loans 2g,3,4,19,32 13,371,611 27,950,867 15,009,727Policy loans 2c,2g,3,4,19,32 694,363,553 220,288,774 415,276,992Investment in shares of stock 2g,4,19,32 46,309,306 260,823 260,823Investment properties 2h,2m,4 106,883 143,183 118,983

Total investments 15,059,845,738 3,760,558,253 3,758,202,734

Cash 2c,2d,2f,2g,3,5,19,29,32 33,896,243 18,009,901 34,355,179Segregated funds net assets of unit link 2c,2d,2g,2i,3,6,19,29,32 5,386,141,530 6,211,193,083 7,434,786,703Segregated funds net assets of sharia 2d,2g,2j,3,7,19,29,32 99,470,792 71,437,455 78,338,010Premiums receivable 2c,2d,2k,2q,8,29,32 19,609,013 13,919,506 19,527,987Reinsurance receivables 2c,2k,2r,9,31,32 877,186 301,424 1,940,878Investment income receivables 2c,2d,2g,3,10,19,29,32 29,876,846 8,654,082 11,800,868Receivable from sale of investment 3 - - 731,875Other receivables 2g,3,11,19,32 3,963,395 2,235,021 4,383,342Prepaid expenses 2d,12,29 6,002,688 3,054,562 2,594,559Guarantee deposits 2d,2g,3,19,29,32 793,433 415,335 407,412Advances 667,753 185,153 195,048Property and equipment - net of

accumulated depreciation ofRp 66,217,671 thousand as of September 30, 2011Rp 55,501,315 thousand as of September 30, 2010 andRp 57,612,877 thousand as of December 31, 2010 2l,2m,13 120,501,246 74,961,144 96,679,399

Deferred tax assets - net 2u,16 1,363,140 - -Other assets 3,064,892 2,054,205 2,101,427

TOTAL ASSETS 20,766,073,895 10,166,979,124 11,446,045,421

LIABILITIES AND EQUITY

LIABILITIESLiabilities to policyholders:

Liability for future policy benefits 2c,2n,14,29,32 6,569,452,234 2,576,263,303 2,481,279,407Estimated claims liability 2c,2d,2o,2r,14,29,32 14,767,744 19,879,728 17,369,920Claims payable 2c,2r,14,32 58,232,862 53,336,166 83,894,107Unearned premiums 2c,2d,2p,2q,14,29,32 25,350,560 19,327,092 17,820,512Segregated funds contracts liabilities of unit link 2c,2i,6,32 5,103,098,052 6,122,675,292 7,054,709,954Segregated funds contracts liabilities of sharia 2j,7 49,042,960 28,619,405 33,307,313

Total liabilities to policyholders 11,819,944,412 8,820,100,986 9,688,381,213

Policyholders' deposits 2q,19 19,288,543 - 10,247,574Reinsurance payables 2c,2r,15,31,32 3,847,266 3,331,256 1,732,935Commissions payable 2g,2s 752,920 459,840 696,884Taxes payable 2u,16 1,482,036 1,172,113 1,025,811Accrued expenses 2g,17,19,32 7,655,043 1,656,653 3,241,612Estimated liabilities for employees' benefits 2t,30 39,391,313 24,841,886 37,652,205Deferred tax liabilities - net 2u,16 - 3,660,647 375,968Other liabilities 2c,2g,2q,18,19,32 197,710,556 189,473,576 197,903,975Total Liabilities 12,090,072,089 9,044,696,957 9,941,258,177

EQUITYCapital stock - Rp 1,000,000 par value per share

Authorized - 105,000 shares as of September 30, 2011 and100,000 shares as of September 30, 2010 and December 31, 2010Issued and fully paid - 105,000 shares as of September 30, 2011,52,500 shares as of September 30, 2010 and December 31, 2010 20 105,000,000 52,500,000 52,500,000

Additional paid in capital 20 6,947,500,000 - -Other equity component 2g,4 (14,002,639) (11,041,095) 48,301,106Retained earnings 1,637,504,445 1,080,823,262 1,403,986,138Total Equity 8,676,001,806 1,122,282,167 1,504,787,244

TOTAL LIABILITIES AND EQUITY 20,766,073,895 10,166,979,124 11,446,045,421

See accompanying notes to financial statements which are an integral part of the financial statements.

September 30, (Unaudited)

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PT ASURANSI JIWA SINARMAS MSIG (formerly PT Asuransi Jiwa Sinarmas)Statements of Comprehensive IncomeFor the Nine Month Periods Ended September 30, 2011 and 2010

2011 2010Notes (Nine Months) (Nine Months)

Rp '000 Rp '000

REVENUESPremium income

Premiums 2q,22 9,805,872,634 6,392,058,556Reinsurance premiums (5,817,059) (6,020,994)Increase (decrease) in unearned premiums 2p 1,320,956 (1,954,213)

Total Premium Income - Net 9,801,376,531 6,384,083,349

Investment incomeInvestment income - net 23 1,416,130,627 978,010,281Loss on foreign exchange - net 2c (24,526,139) (56,699,675)

Total Investment Income - Net 1,391,604,488 921,310,606Other Income - Net 2c,2i,24 32,440,117 13,220,619

Total Revenues - Net 11,225,421,136 7,318,614,574

EXPENSESClaims and benefits 2r,25 7,917,358,770 4,990,058,595Increase (decrease) in liability for future policy benefits

and estimated claims liability - net 2n,2o 4,085,506,633 (788,138,271)General and administrative 2l,2t,26 95,092,578 81,776,728Acquisition 2s,27 48,928,459 23,136,324Marketing 28 17,361,231 4,389,368Increase in payables to sharia's policy holders 2j 15,735,647 13,154,039Increase (decrease) in payables to unit link's policy holders 2i (1,951,611,902) 2,756,857,466Reinsurance claims - 1,245,487

Total Expenses 10,228,371,416 7,082,479,736

INCOME BEFORE TAX 997,049,720 236,134,838

DEFERRED TAX BENEFIT (EXPENSE) 2u,16 1,739,108 (16,801,732)

NET INCOME 998,788,828 219,333,106

OTHER COMPREHENSIVE LOSSUnrealized loss on changes in fair value of

available for sale securities 2g,4 (62,303,745) (10,551,891)

TOTAL COMPREHENSIVE INCOME 936,485,083 208,781,215


September 30 (Unaudited)

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PT ASURANSI JIWA SINARMAS MSIG (formerly PT Asuransi Jiwa Sinarmas) Statements of Changes in EquityFor the Nine Month Periods Ended September 30, 2011 and 2010

Unrealized Gain (Loss) on Changes in

Additional Fair Value of Available TotalNotes Capital Stock Paid in Capital For Sale Securities Retained Earnings Equity

Rp '000 Rp '000 Rp '000 Rp '000 Rp '000

Balance as of January 1, 2010 52,500,000 - (489,204) 861,490,156 913,500,952

Total comprehensive income during the year - - 48,790,310 542,495,982 591,286,292

Balance as of December 31, 2010 52,500,000 - 48,301,106 1,403,986,138 1,504,787,244

Issuance of additional shares of stock 20 52,500,000 6,947,500,000 - - 7,000,000,000

Cash dividends 21 - - - (765,270,521) (765,270,521)

Total comprehensive income during the period (Unaudited) - - (62,303,745) 998,788,828 936,485,083

Balance as of September 30, 2011 (Unaudited) 105,000,000 6,947,500,000 (14,002,639) 1,637,504,445 8,676,001,806

Unrealized Gain (Loss) on Changes in

Additional Fair Value of Available TotalCapital Stock Paid in Capital For Sale Securities Retained Earnings Equity

Rp '000 Rp '000 Rp '000 Rp '000 Rp '000

Balance as of January 1, 2010 52,500,000 - (489,204) 861,490,156 913,500,952

Total comprehensive income during the period (Unaudited) - - (10,551,891) 219,333,106 208,781,215

Balance as of September 30, 2010 (Unaudited) 52,500,000 - (11,041,095) 1,080,823,262 1,122,282,167


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PT ASURANSI JIWA SINARMAS MSIG (formerly PT Asuransi Jiwa Sinarmas) Statements of Cash FlowsFor the Nine Month Periods Ended September 30, 2011 and 2010

September 30 (Unaudited)2011 2010

(Nine Months) (Nine Months)Rp '000 Rp '000

CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from:

Premiums 9,820,298,025 6,501,104,063Reinsurance commissions and claims 1,063,692 11,241Others 27,352,758 7,817,153

Cash payments for:Reinsurance premiums (3,702,728) (5,079,289)Commissions and other agent allowances (48,872,423) (23,183,729)Operating expenses (93,143,693) (68,087,655)Claims and benefits (7,943,020,015) (4,965,886,335)

Net Cash Provided by Operating Activities 1,759,975,616 1,446,695,449

CASH FLOWS FROM INVESTING ACTIVITIES Income received from investments 1,187,101,864 436,229,298Placements in time deposits (4,884,163,535) (517,924,296)Proceeds from disposal of (placement in) available for

sale securities 584,696,315 (677,695,127)Proceeds from disposal of (placement in) held to maturity securities 18,354,407 (119,519,631)Proceeds from sale of property and equipment 198,459 229,170Acquisition of (proceed from) mortgage and

policy loans (277,448,445) 194,686,985Acquisition of other assets (1,640,035) (370,826)Acquisition of property and equipment (35,279,239) (13,122,354)Acquisition of investment in shares (46,048,483) -Placements in financial assets at

fair value through profit and loss (4,623,921,684) (661,010,631)

Net Cash Used in Investing Activities (8,078,150,376) (1,358,497,412)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of additional shares of stock 7,000,000,000 -Dividends paid (762,716,599) -

Net Cash Provided by Financing Activities 6,237,283,401 -

NET INCREASE (DECREASE) IN CASH (80,891,359) 88,198,037

CASH AT THE BEGINNING OF THE PERIOD 178,607,517 31,429,204

CASH AT THE END OF THE PERIOD 97,716,158 119,627,241

Supplementary Disclosures Cash consists of:

Cash 33,896,243 18,009,901 Segregated funds net assets of unit link - cash in banks 46,676,678 87,962,636 Segregated funds net assets of sharia - cash in banks 17,143,237 13,654,704

97,716,158 119,627,241


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PT ASURANSI JIWA SINARMAS MSIG (formerly PT Asuransi Jiwa Sinarmas) Notes to Financial Statements September 30, 2011 and 2010 and December 31, 2010 and For the Nine Month Periods Ended September 30, 2011 and 2010

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1. General

a. Establishment and General Information

PT Asuransi Jiwa Sinarmas (the Company) was established under the name of PT Asuransi Jiwa Purnamala Internasional Indonesia on July 17, 1984 based on Notarial Deed No. 44 of Benny Kristianto, S.H., notary in Jakarta. The Deed of Establishment was approved by the Minister of Justice of the Republic of Indonesia in his Decision Letter No. C2-7176.HT.01.01.Th.84 dated December 21, 1984 and was published in the State Gazette of the Republic of Indonesia No. 85 dated October 22, 1985, Supplement No. 1304. The Company's Articles of Association have been amended several times, most recently by Notarial Deed No.3 dated November 23, 2009 of Syofilawati, S.H., concerning the changes in the composition of the Board of Commissioners. These amendments have been accepted and recorded in the Administration System database of the Ministry of Law and Human Rights of the Republic of Indonesia based on the Letter of Acceptance No.AHU-AH.01.10-21636, 2009, dated December 3, 2009. Based on Article 3 of the Company's Articles of Association, the scope of its activities is to engage in selling life, accident and health insurance and annuities, also to act as a trustee of pension funds in accordance with the Pension Fund Laws of the Republic of Indonesia. The Company obtained its operating license from the Minister of Finance of the Republic of Indonesia in his Decree Letter No. KEP-107/KMK.13/1989. The Company's domicile is on 8th floor Wisma Eka Jiwa, Jalan Mangga Dua Raya, North Jakarta, with representative marketing offices in 34 cities in Indonesia. PT Sinar Mas Multiartha Tbk is the immediate holding company of the Company. The Company is part of Sinar Mas Group of Companies.

b. Board of Commissioners, Directors, and Employees The Company's commissioners and directors as of September 30, 2011 are as follows: Board of CommissionersPresident Commissioner : Indra WidjajaIndependent Commissioner : Prof Dr Wahjudi PrakarsaCommissioners : Ir Gandi Sulistiyanto Soeherman

: Atsushi Yagi

DirectorsPresident Director : Ivena WidjajaDirectors : Yu Kutai

: Hamid Hamzah, FSAI, ChFC, CLU : Ignatius Josephus Soegeng Wibowo

: Cahyadi Kong, AAIJ: Jaime Jose Marudo Javier Junior: Hirofumi Koyanagi


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The Company's commissioners and directors as of September 30, 2010 and December 31, 2010 are as follows:

Board of CommissionersPresident Commissioner : Ivena WidjajaIndependent Commissioner : Prof. Dr. Wahjudi PrakarsaCommissioner : Gandi Sulistiyanto Suherman

DirectorsPresident Director : Ivena WidjajaDirectors : Hamid Hamzah, FSAI, ChFC, CLU

: IJ. Soegeng Wibowo : Cahyadi Kong, AAIJ As of September 30, 2011 and 2010 and December 31, 2010, the Company had a total number of permanent employees (unaudited) of 762, 714 and 591, respectively.

The Directors had completed and authorized for issue the financial statements of PT Asuransi Jiwa Sinarmas MSIG (formerly PT Asuransi Jiwa Sinarmas) on October 26, 2011 and are responsible for the financial statements.

2. Summary of Significant Accounting and Financial Reporting Policies a. Basis of Financial Statements Preparation and Measurement

The interim financial statements have been prepared in accordance with Indonesian Financial Accounting Standards “SAK”, which comprise the statements and interpretations issued by the Board of Financial Accounting Standards of the Indonesian Institute of Accountants, as disclosed further in relevant succeeding notes, several amended and published accounting standards were adopted effective January 1, 2011. The Company’s interim financial statements for the nine month period ended September 30, 2011 are in accordance with the Statements of Financial Accounting Standard (“PSAK”) No. 1 (Revised 2009), “Presentation of Financial Statements” and PSAK No. 3 (Revised 2010), “Interim Financial Statements”, both adopted on January 1, 2011.

The said adoption of PSAK No. 1 (Revised 2009) and PSAK No. 3 (Revised 2010) have significant impact on the related presentation and disclosures in the interim financial statements.

The accounting policies adopted in the preparation of the interim financial statements are consistent with those made in preparation of the financial statements for the year ended December 31, 2010, except for the adoption of several amended PSAK effective January 1, 2011 as disclosed in this Note. The measurement basis used is the historical cost, except for certain accounts which are measured on the bases described in the related accounting policies. The financial statements are prepared under the accrual basis of accounting, except for the statements of cash flows.

The statements of cash flows are prepared using the direct method with classifications of cash flows into operating, investing and financing activities.

The reporting currency used in the preparation of the financial statements is the Indonesian Rupiah (Rupiah) which is the functional currency of the Company. Unless otherwise stated, all figures presented in the financial statements are stated in thousand of Rupiah.


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b. Adoption of Revised Statements of Financial Accounting Standards

The Company has adopted the following Financial Accounting Standards (PSAK) and Interpretations (ISAK) effective January 1, 2011:

(1) PSAK No. 1 (Revised 2009), “Presentation of Financial Statements”, regulates the presentation of financial statements as to, among others, the objective, component of financial statements, fair presentation, materiality and aggregate, offsetting, distinction between current and non-current assets and short-term and long-term liabilities, comparative information and consistency and introduces new disclosures such as, among others, key estimations and judgments, capital management, other comprehensive income, departures from accounting standards and statement of compliance. This standard introduces a statement of comprehensive income that combines all items of income and expenses recognized in the profit and loss together with “other comprehensive income”. The entities may choose to present all items in one statement, or to present two linked statements, a separate statement of income and a statement of comprehensive income. The Company has elected to present a single statement and has presented its prior periods’ financial statements in conformity with this PSAK to be comparative with the September 30, 2011 interim financial statements.

(2) PSAK No. 3 (Revised 2010), “Interim Financial Reporting”, regulates the minimum

presentation of interim financial statements, and also the principles of recognition and measurement in the complete or condensed interim financial statements.

(3) PSAK No. 7 (Revised 2010), “Related Party Disclosures”, requires disclosures of related party

relationships, transactions and outstanding balances, including commitments, in the interim financial statements.

(4) PSAK No. 48 (Revised 2009), “Impairment of Assets”, prescribes the procedures to be

employed by an entity to ensure that its assets are carried at no more than their recoverable amount. An asset is carried at more than its recoverable amount if its carrying amount exceeds the amount to be recovered through use or sale of the asset. If this is the case, the asset is described as impaired and this revised PSAK requires the entity to recognize an impairment loss. This revised PSAK also specifies when an entity should reverse an impairment loss and prescribes disclosures.

As described herein, the adoption of PSAK No. 48 (Revised 2009) has significant impact on the financial reporting including the related disclosures.

The following are the new and revised accounting standards and interpretations which should be adopted effective January 1, 2011 but which are either irrelevant or relevant but do not have material impact to the Company’s interim financial statements:

PSAK

1. PSAK No. 2 (Revised 2009), Statements of Cash Flows 2. PSAK No. 4 (Revised 2009), Consolidated and Separate Financial Statements 3. PSAK No. 5 (Revised 2009), Operating Segments 4. PSAK No. 8 (Revised 2010), Events After the Reporting Period 5. PSAK No. 12 (Revised 2009), Investments in Joint Ventures 6. PSAK No. 15 (Revised 2009), Investments in Associates 7. PSAK No. 19 (Revised 2010), Intangible Assets 8. PSAK No. 22 (Revised 2010), Business Combinations 9. PSAK No. 23 (Revised 2010), Revenues 10. PSAK No. 25 (Revised 2009), Accounting Policies, Changes in Accounting Estimates and

Errors


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11. PSAK No. 58 (Revised 2009), Noncurrent Assets Held For Sale and Discontinued Operations

12. PSAK No. 57 (Revised 2009), Provisions, Contingent Liabilities and Contingent Assets

ISAK 1. ISAK 7 (Revised 2009), Consolidation – Special Purpose Entities 2. ISAK 9 (Revised 2009), Changes in Existing Decommissioning, Restoration and Similar

Liabilities 3. ISAK 10 (Revised 2009), Customer Loyalty Program 4. ISAK 11 (Revised 2009), Distribution of Non – Cash Assets to Owners 5. ISAK 12 (Revised 2009), Jointly Controlled Entities – Nonmonetary Contributions by Ventures

6. ISAK 14 (Revised 2009), Intangible Assets – Website Cost 7. ISAK 17 (Revised 2009), Interim Financial Reporting and Impairment

c. Foreign Currency Transactions and Balances

The book of accounts of the Company is maintained in Rupiah. Transactions during the period involving foreign currencies are recorded at the rates of exchange prevailing at the time the transactions are made. At the statement of financial position date, monetary assets and liabilities denominated in foreign currencies are adjusted using the Bank Indonesia’s middle rates of exchange prevailing at that date. The resulting gains or losses are credited in or charged to current operations.

The foreign exchange gains or losses on monetary items is the difference between amortized cost in Rupiah at the beginning of the period, adjusted for effective interest and payments during the period, and the amortized cost in foreign currency translated into Rupiah at the exchange rate at the end of the period. As of September 30, 2011 and 2010 and December 31, 2010, the conversion rates used by the Company were the middle rates of Bank Indonesia of Rp 8,823 and Rp 8,924 and Rp 8,991, respectively, per US$ 1.

d. Transactions with Related Parties

Accounting Policies Effective January 1, 2011 A party is considered to be related to the Company if: 1. directly, or indirectly through one or more intermediaries, the party:

a) controls, is controlled by, or is under common control with, the Company; b) has an interest in the Company that gives it significant influence over the Company; or c) has joint control over the Company;

2. the party is an associate of the Company; 3. the party is a joint venture in which the Company is a venturer; 4. the party is a member of the key management personnel of the Company or its parent; 5. the party is a close member of the family of any individual referred to in (1) or (4); 6. the party is an entity that is controlled, jointly controlled or significantly influenced by or for

which significant voting power in such entity resides with, directly or indirectly, any individual referred to in (4) or (5); or

7. the party is a post employment benefit plan for the benefit of employees of the Company, or of any entity that is a related party of the Company.


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Accounting Policies Prior to January 1, 2011

Related parties consist of the following: 1. Companies that, through one or more intermediaries, control or are controlled by, or are under

common control with, the Company (including holding companies, subsidiary, and fellow subsidiary);

2. Associated companies; 3. Individuals owning, directly or indirectly, an interest in the voting power of the Company that

gives them significant influence over the Company, and close family members of such individuals (close family members are those who can influence or can be influenced by such individuals in their transactions with the Company);

4. Key management personnel, that is, those persons having authority and responsibility for

planning, directing and controlling the activities of the Company, including commissioners, directors and managers of the Company and close family members of such individuals; and

5. Companies in which a substantial interest in the voting power is owned, directly or indirectly,

by any person described in (3) or (4) or over which such person is able to exercise significant influence. These include companies owned by commissioners, directors or major stockholders of the Company, and companies that have a common member of key management with that of the Company.

All transactions with related parties, whether or not done under similar terms and conditions as those done with third parties, are disclosed in the financial statements.

e. Use of Estimates

The preparation of financial statements in conformity with financial accounting standards in Indonesia requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have significant effect on the amount recognized in the financial statements are described in Note 3 to the the financial statements.

f. Cash Cash includes cash on hand, cash in banks, which are not used as collateral and are not restricted and funds placed in securities companies.

g. Financial Instruments The Company recognizes a financial asset or a financial liability in the statement of financial position if, and only if, they become a party to the contractual provisions of the instrument. All regular way purchases and sales of financial instruments are recognized on the settlement date.


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Financial instruments are recognized initially at fair value, which is the fair value of the consideration given (in case of an asset) or received (in case of a liability). The fair value of the consideration given or received is determined by reference to the transaction price or other market prices. If such market prices are not reliably determinable, the fair value of the consideration is estimated as the sum of all future cash payments or receipts, discounted using the prevailing market rates of interest for similar instruments with similar maturities. The initial measurement of financial instruments, except for financial instruments at fair value through profit and loss (FVPL), includes transaction costs. Transaction costs include only those costs that are directly attributable to the acquisition of a financial asset or issue of financial liability and they are incremental costs that would not have been incurred if the instrument had not been acquired or issued. Such transaction costs are amortized over the terms of the instruments based on the effective interest rate method. Included in transaction costs are fees and commissions paid to agents (including employees acting as selling agents), consultants, brokerage and securities dealers, levies required by regulators and stock exchanges, as well as taxes and duties imposed on transfers made. Transaction costs do not include debt premium or discount, financing costs (financing costs), or internal administrative costs or storage costs (handling cost).

Effective interest rate method is a method of calculating the amortized cost of a financial asset or a financial liability and allocating the interest income or expense over the relevant period by using an interest rate that exactly discounts estimated future cash payments or receipts through the expected life of the instruments or, when appropriate, a shorter period to the net carrying amount of the financial instruments. When calculating the effective interest, the Company estimates future cash flows considering all contractual terms of the financial instruments excluding future credit losses and includes all fees and points paid or received that are an integral part of the effective interest rate. Amortized cost is the amount at which the financial asset or financial liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortization using the effective interest rate method of any difference between the initial amount recognized and the maturity amount, minus any reduction for impairment. The classification of the financial instruments depends on the purpose for which the instruments were acquired and whether they are quoted in an active market. At initial recognition, the Company classifies its financial instruments in following categories: financial assets at FVPL, loans and receivables, held-to-maturity (HTM) investments, available for sale (AFS) financial assets, financial liabilities at FVPL and other financial liabilities; and, where allowed and appropriate, re-evaluates such classification at every reporting date. Determination of Fair Value The fair value of financial instruments traded in active markets at the statement of financial position date is based on their quoted market price or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs. When current bid and asking prices are not available, the price of the most recent transaction is used since it provides evidence of the current fair value as long as there has not been a significant change in economic circumstances since the time of the transaction. For all other financial instruments not listed in an active market, except investment in unquoted equity securities, the fair value is determined by using appropriate valuation techniques. Valuation techniques include net present value techniques, comparison to similar instruments for which market observable prices exist, options pricing models, and other relevant valuation models. In the absence of a reliable basis for determining fair value, investments in unquoted equity securities are carried at cost net of impairment.


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Day 1 Profit/Loss Where the transaction price in a non-active market is different from the fair value of other observable current market transactions in the same instrument or based on a valuation technique whose variables include only data from observable market, the Company recognizes the difference between the transaction price and fair value (a Day 1 profit/loss) in the statement of comprehensive income unless it qualifies for recognition as some other type of asset. In cases where the data is not observable, the difference between the transaction price and model value is only recognized in the statement of comprehensive income when the inputs become observable or when the instrument is derecognized. For each transaction, the Company determines the appropriate method of recognizing the “Day 1” profit/loss amount. Financial Assets 1. Financial Assets at FVPL

Financial assets at FVPL include financial assets held for trading and financial assets designated upon initial recognition at FVPL. Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near term. Derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Financial assets may be designated at initial recognition at FVPL if the following criteria are met:

a. the designation eliminates or significantly reduces the inconsistent treatment that would

otherwise arise from measuring the financial assets or recognizing gains or losses on them on a different basis;

b. the assets are part of a group of financial assets, financial liabilities or both which are

managed and their performance evaluated on a fair value basis, in accordance with a documented risk management or investment strategy; or

c. the financial instruments contain an embedded derivative, unless the embedded

derivative does not significantly modify the cash flows or it is clear, with little or no analysis, that it would not be separately recorded.

Financial assets at FVPL are recorded in the statements of financial position at fair value. Changes in fair value are recognized directly in the statements of comprehensive income. Interest earned is recorded as interest income, while dividend income is recorded as part of other income according to the terms of the contract, or when the right of payment has been established. As of September 30, 2011 and 2010 and December 31, 2010, this category includes investments (shares that are traded in the Indonesia Stock Exchange and units of mutual fund), segregated funds net assets - unit link (shares that are traded in the Indonesia Stock Exchange and units of mutual fund), segregated funds net assets - sharia (shares that are traded in the Indonesia Stock Exchange and units of mutual fund).

2. Loans and Receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are not entered into with the intention of immediate or short-term resale and are not classified as financial assets at FVPL, HTM investments or AFS financial assets.


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After initial measurement, loans and receivables are subsequently measured at amortized cost using the effective interest method, less allowance for impairment. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees and costs that are an integral part of the effective interest rate. The amortization is included as part of interest income in the statements of comprehensive income. The losses arising from impairment are recognized in the statements of comprehensive income. As of September 30, 2011 and 2010 and December 31, 2010, this category includes investments (time deposits, policy loans and mortgage loans), cash, segregated funds net assets – unit link (cash in banks, time deposits and investment receivables), segregated funds net assets - sharia (cash in banks, time deposits and investment receivables), investment income receivables and other receivables.

3. HTM Investments

HTM investments are non-derivative financial assets with fixed or determinable payments and fixed maturities for which the Company’s management has the positive intention and ability to hold to maturity. When the Company sells or reclassifies other than an insignificant amount of HTM investments before maturity, the entire category would be tainted and the investments are reclassified as AFS financial assets. After initial measurement, these investments are subsequently measured at amortized cost using the effective interest method, less impairment in value. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees that are an integral part of the effective interest rate. The amortization is included as part of interest income in the statements of comprehensive income. Gains and losses are recognized in the statements of comprehensive income when the HTM investments are derecognized and impaired, as well as through the amortization process using effective interest method. As of September 30, 2011 and 2010 and December 31, 2010, this category includes short-term investment (bonds), segregated funds net assets – unit link (bonds) and segregated funds net assets - sharia (bonds).

4. AFS Financial Assets

AFS financial assets are those which are designated as such or not classified in any of the other categories. They are purchased and held indefinitely and may be sold in response to liquidity requirements or changes in market conditions. After initial measurement, AFS financial assets are subsequently measured at fair value. The effective yield component of AFS debt securities, as well as the impact of translation on foreign currency-denominated AFS debt securities, is reported in the statements of comprehensive income. The unrealized gains and losses arising from fair valuation of AFS financial assets are presented as part of equity section of the statement of financial position and in the statement of changes in equity with changes in balance of unrealized gains and losses recognized in statement of comprehensive income until the investment is derecognized. As of September 30, 2011 and 2010 and December 31, 2010, this category includes investments - shares that are traded in Indonesia Stock Exchange, and certain investments in shares of stock (Note 4). In the absence of a reliable basis for determining the fair value, the Company’s certain investments in shares of stock enumerated in Note 4g are carried at cost.


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Financial Liabilities

1. Financial Liabilities at FVPL Financial liabilities are classified in this category if these result from trading activities or derivative transactions that are not accounted for as accounting hedges, or when the Company elects to designate a financial liability under this category. Changes in fair value are recognized directly in the statements of comprehensive income.

As of September 30, 2011 and 2010 and December 31, 2010, the Company has not classified any financial liability as at FVPL.

2. Other Financial Liabilities

This category pertains to financial liabilities that are not held for trading or not designated at FVPL upon the inception of the liability.

Issued financial instruments or their components, which are not classified as financial liabilities at FVPL are classified as other financial liabilities, where the substance of the contractual arrangement results in the Company having an obligation either to deliver cash or another financial asset to the holder, or to satisfy the obligation other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of own equity shares.

Other financial liabilities are recognized initially at fair value and are subsequently carried at amortized cost, taking into account the impact of applying the effective interest rate method of amortization (or accretion) for any related premium, discount and any directly attributable transaction costs. As of September 30, 2011 and 2010 and December 31, 2010, this category includes accrued expenses and other liabilities.

Offsetting of Financial Instruments Financial assets and liabilities are offset and the net amount reported in the statement of financial position if, and only if, there is a currently enforceable right to offset the recognized amounts and there is intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. Impairment of Financial Assets The Company’s management assesses at each statement of financial position date whether a financial asset or group of financial assets is impaired.

1. Assets Carried at Amortized Cost

The management first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the management determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, the asset is included in a group of financial assets with similar credit risk characteristics and that group of financial assets is collectively assessed for impairment. Assets that are individually assessed for impairment and for which an impairment loss, is or continues to be recognized are not included in a collective assessment of impairment.


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If there is objective evidence that an impairment loss on loans and receivables or held to maturity investments carried at amortized cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate (i.e., the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced either directly or through the use of an allowance account. The amount of loss is charged to the statements of comprehensive income.

If, in a subsequent year, the amount of the impairment loss decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed. Any subsequent reversal of an impairment loss is recognized in the statements of comprehensive income, to the extent that the carrying value of the asset does not exceed its amortized cost at the reversal date.

2. Assets Carried at Cost

If there is objective evidence that an impairment loss has been incurred on an unquoted equity instrument that is not carried at fair value because its fair value cannot be reliably measured, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset.

3. AFS Financial Assets

In case of equity investments classified as AFS, assessment of any impairment would include a significant or prolonged decline in the fair value of the investments below its cost. Where there is evidence of impairment, the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognized in the statements of comprehensive income is removed from equity and recognized in the statements of comprehensive income. Impairment losses on equity investments are not reversed through the statements of comprehensive income. Increases in fair value after impairment are recognized directly in equity.

In the case of debt instruments classified as AFS, impairment is assessed based on the same criteria as financial assets carried at amortized cost. Interest continues to be accrued at the original effective interest rate on the reduced carrying amount of the asset and is recorded as part of interest income in the statements of comprehensive income. If, in subsequent period, the fair value of a debt instrument increased and the increase can be objectively related to an event occurring after the impairment loss was recognized in the statements of comprehensive income, the impairment loss is reversed through the statements of comprehensive income.

Derecognition of Financial Assets and Liabilities

1. Financial Assets

Financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognized when:

a. the rights to receive cash flows from the asset have expired; b. the Company retains the right to receive cash flows from the asset, but has assumed an

obligation to pay them in full without material delay to a third party under a “pass-through” arrangement; or

c. the Company has transferred its rights to receive cash flows from the asset and either (i) has transferred substantially all the risks and rewards of the asset, or (ii) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.


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Where the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and has neither transferred nor retained substantially all the risks and rewards of the asset nor is transferred control of the asset, the asset recognized to the extent of the Company continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

2. Financial Liabilities

A financial liability is derecognized when the obligation under the contract is discharged, cancelled or has expired. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability. The recognition of a new liability and the difference in the respective carrying amounts is recognized in the statements of comprehensive income.

h. Investment Properties

Investment properties are measured at cost, including transaction costs, less accumulated depreciation and any impairment loss. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met; and excludes the costs of day-to-day servicing of an investment property. Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognized in the statements of comprehensive income in the period of retirement or disposal.

Investment properties are depreciated over their estimated useful life of 20 years using the straight-line method. Transfers are made to investment properties when, and only when, there is a change in use, evidenced by ending of owner-occupation, commencement of an operating lease to another party or ending of construction or development. Transfers are made from investment properties when, and only when, there is a change in use, evidenced by commencement of owner-occupation or commencement of development with a view to sale.

i. Segregated Funds Net Assets and Segregated Funds Contract Liabilities – Unit Link

Unit link is an investment and self-protection insurance product of the Company where in the policyholders has the opportunity to manage their funds together with other investors to maximize the benefit from the amount invested. The Company issues a contract where the amount of benefit is directly linked to the market value of the investments held in the Unit link holders’ fund. Although the underlying investments are registered in the name of the Company and the Unit link holders have no direct access to the specific assets, the contractual arrangements are such that the Unit link holders bear the risks and rewards of the fund’s investment performance. Unit link holders’ fund is invested in time deposits, bonds, mutual fund and shares. Such investments are stated at fair values, except for time deposits which are stated at nominal value. Payable to Unit link holders will be increased or decreased following the placement or withdrawal of Unit link holders’ fund and the current net asset value of the related investments. The Company derives income from Unit link transactions, which is presented under “Other income” in the statements of comprehensive income.


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j. Segregated Fund Net Asset and Segregated Fund Contract Liabilities – Sharia

Sharia is an investment product of the Company, which is based on mudharabah for participant (profit sharing). Fund management in investment product of sharia is based on sharia principles.

k. Receivables

Premiums receivable consist of receivables from policyholders/agents/ brokers resulting from an insurance transaction. In conditions where the Company gives premium discount to policyholders, the discount is reduced directly from the related premiums receivable.

Reinsurance receivables cannot be offset against reinsurance payable, unless the reinsurance contract specifically allows the right of offset. If a credit balance arises from the offsetting of the reinsurance receivables and payables, this balance is presented in the liability section as reinsurance payables. The Company assesses its receivables for impairment on a regular basis. If there is objective evidence that these receivables are impaired, the Company reduces the carrying amounts of the receivables to their recoverable amounts and recognize that impairment loss in the statements of comprehensive income. The Company gathers the objective evidence that a receivable is impaired using the same process adopted for financial assets held at amortized cost. The impairment loss is also calculated following the same method used for financial assets described in Note 2g.

l. Property and Equipment

Property and equipment, except land, are carried at cost, excluding day-to-day servicing, less accumulated depreciation and any impairment in value. Land is not depreciated and is stated at cost less any impairment in value.

The initial cost of property and equipment consists of its purchase price, including import duties and taxes and any directly attributable costs in bringing the property and equipment to its working condition and location for its intended use. Expenditures incurred after the property and equipment have been put into operations, such as repairs and maintenance costs, are normally charged to operations in the year such costs are incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in an increase in the future economic benefits expected to be obtained from the use of the property and equipment beyond its originally assessed standard of performance, the expenditures are capitalized as additional costs of property and equipment. Depreciation is computed on a straight-line basis over the property and equipment’s useful lives as follows:

Years Buildings 20 Building renovations and improvements 5 - 10 Vehicles 5 – 8 Computer 4 – 5 Office furniture and fixtures 4 – 8 Communication equipment 4 – 5

The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable.


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When each major inspection is performed, its cost is recognized in the carrying amount of the item of property and equipment as a replacement if the recognition criteria are satisfied. Such major inspection is capitalized and amortized over the next major inspection activity. When assets are sold or retired, the cost and related accumulated depreciation and any impairment loss are eliminated from the accounts. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gains or loss arising from derecognition of property and equipment (calculated as the difference between the net disposal proceeds, if any, and the carrying amount of the item) is included in the statements of comprehensive income in the period the item is derecognized. The asset’s residual values, useful lives and depreciation and amortization method are reviewed and adjusted if appropriate, at each financial year end.

m. Impairment of Non-Financial Assets

The Company assesses at each annual reporting period whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset (i.e. an intangible asset with an indefinite useful life, an intangible asset not yet available for use, or goodwill acquired in a business combination) is required, the Company makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs to sell and its value in use, and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses of continuing operations are recognized in the statements of comprehensive income as “impairment losses”. In assessing the value in use, the estimated net future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used to determine the fair value of the assets. These calculations are corroborated by valuation multiples or other available fair value indicators. Impairment losses of continuing operations, if any, are recognized in the statements of comprehensive income under expense categories that are consistent with the functions of the impaired assets. An assessment is made at each annual reporting period as to whether there is any indication that previously recognized impairment losses recognized for an asset may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognized impairment loss for an asset is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. The reversal is limited so that the carrying amount of the assets does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Reversal of an impairment loss is recognized in the statements of comprehensive income. After such a reversal, the depreciation charge on the said asset is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.


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n. Liability for Future Policy Benefits Liability for future benefits represents the present value of estimated future policy benefits to be paid to policyholders or their heirs less present value of estimated future premiums to be received from the policyholders, recognized consistenly with the recognition of premium income. Liability for future benefits is stated in the statements of financial position in accordance with actuarial calculation. The increase (decrease) in liability for future policy benefits is recognized as expense (income) in the current period.

o. Estimated Claims Liability

Estimated claims liability represents amount set aside to provide for outstanding and incurred claims arising from insurance policies in force during the accounting period. The liability included both reported and unreported claims and is calculated in accordance to the guidelines set by the Minister of Finance of the Republic of Indonesia No. 424/KMK.06/2003 dated September 30, 2003 concerning “Financial Condition of Insurance and Reinsurance Company”. The Company has provided estimated claims liability for death insurance, health and personal accident insurance based on the computation of its in-house actuary.

p. Unearned Premiums

Unearned premiums represent the premiums which have not been recognized as revenue since the period covered extends beyond the end of the current period. Unearned premiums are individually determined for each type of coverage, proportionately with the amount of protection provided during the coverage period or the risk period, consistent with respective premium income recognition and is calculated in accordance to the guidelines set by the Minister of Finance of the Republic of Indonesia No. 424/KMK.03/2003 dated September 30, 2003 concerning “Financial Condition of Insurance and Reinsurance Company”.

q. Premium Income Recognition

Premiums on insurance and reinsurance contracts are recognized as revenue over the policy contract period in proportion to the insurance coverage provided. Premiums from coinsurance are recognized as income based on the Company’ss proportionate share in the premium. Premium due to reinsurance company is recognized as reinsurance premium during the period of reinsurance contract in proportion to the insurance coverage received. Unearned premiums are calculated in aggregate using a percentage in accordance with the Decision Letter of the Minister of Finance of the Republic of Indonesia No. 424/KMK.06/2003 which is minimum of 10% of net premium for insurance policy with period covering not more than one (1) month and minimum of 40% of the net premium for insurance policy with period covering more than one (1) month. The increase or decrease in unearned premiums represents the difference of the balances of unearned premiums between the current and the prior period and is charged to or credited in the statements of comprehensive income. The Company reinsured part of its total accepted risk to other insurance and reinsurance companies. The premium paid to the reinsurer or the insurer’s share in the premium on prospective reinsurance transaction is recognized as reinsurance premium (contra premium account) over the reinsurance contract period in proportion to the insurance coverage provided. A payment or obligation for retrospective reinsurance transaction is recognized as reinsurance receivable from the reinsurer in the amount equivalent to the payment made or recorded liability in relation to the reinsurance contract. Premium income in the statement of comprehensive income is presented at gross premiums, reduced by reinsurance premiums and increased (decreased) by unearned premiums.


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r. Claims Expense

Claims consist of settled claims, claims in process, including claims incurred but not yet reported, and claim settlement expenses. Claims are recognized as expenses when the obligations to settle the claims are incurred. The portion of claims recovered from reinsurers are recorded and recognized as deduction from claim expenses in the same period when the claim expenses are recognized. Subrogation rights are recognized as deduction from claims expense upon realization. Claims in process (estimated own retention claims) are computed based on the Company’s own retention share of the claims in process at statement of financial position date, including claims incurred but not yet reported. Changes in estimated own retention claims are recognized in the statements of comprehensive income at the time of change. The increase or decrease in estimated own retention claims represents the difference between the estimated own retention claims for the current year and the prior period. Estimated claims liability for death insurance, health and personal accident insurance are provided based on actuary computations. Claims expense represents gross claims, reduced by reinsurance claims and increase (decreased) by estimated own retention claims.

s. Commissions Commissions due to insurance brokers, agents and other insurance companies in connection with the insurance coverage are recorded as commission expense when incurred, whereas commissions obtained from reinsurance transactions are recorded as deduction from commission expense, and recognized when earned.

t. Employee Benefits

Short-term employee benefits Short-term employee benefits are in the form of wages, salaries, bonuses, holiday allowances and social security (Jamsostek) contribution. Short-term employee benefits are recognized at its undiscounted amount as a liability, after deducting any amount already paid, in the statement of financial position and as an expense in the statements of comprehensive income. Post-employment benefits

Post-employment benefits are funded defined-benefit plans through a certain pension fund which amounts are determined based on years of service and salaries of the employees at the time of pension. The actuarial valuation method used to determine the present value of defined-benefit reserve, related current service costs and past service costs is the Projected Unit Credit. Current service costs, interest costs, past service costs which are vested, expected return on plan assets and effects of curtailments and settlements (if any) are charged directly to current operations. Past service costs, which are not yet vested and actuarial gains or losses for working (active) employees are amortized during the employees’ average remaining years of service, until the benefits become vested. The Company also provides employee benefits as required under Labor Law No. 13/2003. Post-employment benefits reserve is presented at the present value of defined-benefit reserve net of unrecognized actuarial gains or losses, and unrecognized past service costs.

u. Income Tax Current tax expense is determined based on the taxable income for the year computed using prevailing tax rates.


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Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases and the carry forward tax benefit of unused tax losses (fiscal losses). Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for deductible temporary differences and the carry forward tax benefit of unused fiscal losses to the extent that it is probable that taxable income will be available in future periods against which the deductible temporary differences can be utilized. The carrying amount of a deferred tax asset is reviewed at each statement of financial position date and is reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow the benefit of part or all of that deferred tax assets to be utilized. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable income would be available. Deferred tax is calculated at the tax rates that have been enacted or substantively enacted at statement of financial position date. Deferred tax is charged to or credited in the statements of comprehensive income, except when it relates to items charged to or credited directly in equity, in which case the deferred tax is also charged to or credited directly in equity. Deferred tax assets and liabilities are offset in the statement of financial position in the same manner the current tax assets and liabilities are presented.

v. Provisions

Provisions are recognized when the Company has present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

w. Events after the Reporting Period

Post year-end events that provide additional information about the Company’s financial position at the date of the statement of financial position (adjusting events), if any, are reflected in the financial statements. Post year-end events that are not adjusting events are disclosed in the notes to financial statements when material.

3. Management Use of Estimates, Judgments and Assumptions

In the application of the Company’s accounting policies, which are described in Note 2 to the financial statements, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and assumptions are based on historical experience and other factors that are considered to be relevant.


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Management believes that the following represent a summary of the significant estimates, judgments and assumptions made that affected certain reported amounts of and disclosures in the financial statements:

Fair Value of Financial Assets and Financial Liabilities PSAK No. 55 (Revised 2006), Financial Instruments: Recognition and Measurement requires that certain financial assets and financial liabilities be carried at fair value, which requires the use of accounting estimates and judgment. While significant components of fair value measurement are determined using verifiable objective evidence (i.e. foreign exchange rates, interest rates), the timing and amount of changes in fair value, would differ using a different valuation methodology.

The fair value of financial assets and financial liabilities are set out in Note 19. Financial Assets Not Quoted in Active Market

The Company classifies financial assets by evaluating, among others, whether the asset is quoted or not in an active market. Included in the evaluation on whether a financial asset is quoted in an active market is the determination on whether quoted prices are readily and regularly available, and whether those prices represent actual and regularly occurring market transactions on an arm’s length basis. Allowance for Impairment of Receivables

Allowance for impairment losses is maintained at a level considered adequate to provide for potentially uncollectible receivables. The Company assesses specifically at each statement of financial position date whether there is objective evidence that a financial asset is impaired (uncollectible). The level of allowance is based on past collection experience and other factors that may affect collectability such as the probability of insolvency or significant financial difficulties of the debtor or significant delay in payments. If there is objective evidence of impairment, timing and collectible amounts are estimated based on historical loss data. Provision for doubtful accounts is provided on accounts specifically identified as impaired. Loans and receivables written off are based on management’s decisions that the financial assets are uncollectible or cannot be realized in whatsoever actions will be taken. Evaluation of receivables to determine the total allowance to be provided is performed periodically during the year. Therefore, the timing and amount of provision for doubtful accounts recorded at each period might differ based on the judgments and estimates that have been used. The carrying value of the Company’s loans and receivables as of September 30, 2011 and 2010 and December 31, 2010 are as follows:

December 31,2011 2010 2010

Rp '000 Rp '000 Rp '000

Investments - time deposits 6,123,712,709 335,653,096 60,865,000 Investments - mortgage loans 13,371,611 27,950,867 15,009,727 Investments - policy loans 694,363,553 220,288,774 415,276,992 Cash 33,896,243 18,009,901 34,355,179 Segregated funds net assets unit link - time deposits 105,592,893 716,300,000 1,282,877,067 Segregated funds net assets unit link - cash in banks 46,676,678 87,962,636 139,653,621 Segregated funds net assets unit link - investment income receivables 2,406,720 2,522,871 2,271,336 Segregated funds net assets unit link - other receivables 150,000 - -Segregated funds net assets sharia - time deposits 8,600,000 7,000,000 10,000,000 Segregated funds net assets sharia - cash in banks 17,143,237 13,654,704 4,598,717 Segregated funds net assets sharia - investment income receivables 396,114 298,586 504,456 Investment income receivables 29,876,846 8,654,082 11,800,868 Guarantee deposits 793,433 415,335 407,412 Investment from sale of investment - - 731,875 Other receivables 3,963,395 2,235,021 4,383,342

Total 7,080,943,432 1,440,945,873 1,982,735,592

(Unaudited)September 30,


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Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are disclosed below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments may change due to market changes on circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur:

a. Fair Value of Financial Assets and Financial Liabilities

Financial accounting standards in Indonesia require measurement of certain financial assets and liabilities at fair values, and the disclosure requires the use of estimates. Significant component of fair value measurement is determined based on objective evidence derived from diversification (i.e. foreign exchange, interest rate), while timing and amount of changes in fair value might differ due to different valuation method used. The fair value of financial assets and financial liabilities are set out in Note 19.

b. Estimated Useful Lives of Investment Properties and Property and Equipment. The useful lives of each of the item of the Company’s investment properties and property and equipment are estimated based on the period over which the asset is expected to be available for use. Such estimation is based on a collective assessment of similar business, internal technical evaluation and experience with similar assets. The estimated useful life of each asset is reviewed periodically and updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the asset. It is possible, however, that future results of operations could be materially affected by changes in the amounts and timing of recorded expenses brought about by changes in the factors mentioned above. A reduction in the estimated useful life of any item of investment properties and property and equipment would increase the recorded depreciation and decrease the carrying values of these assets. There is no change in the estimated useful lives of investment properties and property and equipment during the period. The carrying values of these assets are as follows:

December 31,2011 2010 2010

Rp '000 Rp '000 Rp '000

Investment properties 106,883 143,183 118,983 Property and equipment 120,501,246 74,961,144 96,679,399

Total 120,608,129 75,104,327 96,798,382


c. Valuation of Insurance Contract Liabilities Liability for Future Policy Benefits The reserve was calculated based on certain data using the prospective net premium (pure) methods and/ or zilmer modification with maximum of 30% for the first year costs of sum insured, using the actuarial assumptions that were reported to the Minister of Finance, the assumptions used related to mortality and interest rate.


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Estimated Own Retention Claims Estimated own retention claims have 2 types, first, the reserve was computed using the actual claim data until the valuation date, and second, INBR (Incurred But Not Reported) was computed for the group health insurance, using claim ratio method or one of triangle method, the computations for INBR are consistently applied. The carrying values of these reserves are as follows:

December 31,2011 2010 2010

Rp '000 Rp '000 Rp '000

Liability for future policy benefits 6,569,452,234 2,576,263,303 2,481,279,407 Estimated own retention claims 14,767,744 19,879,728 17,369,920

Total 6,584,219,978 2,596,143,031 2,498,649,327


d. Post-employment Benefits The determination of the obligation and post-employment benefits is dependent on the selection of certain assumptions used by actuary in calculating such amounts. Those assumptions are described in Note 30 and include, among others, discount rate and rate of salary increase. Actual results that differ from the Company’s assumptions are accumulated and amortized over future periods and therefore, generally affect the recognized expense and recorded obligation in such future periods. While it is believed that the Company’s assumptions are reasonable and appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the amount of Company’s defined benefit post-employment reserve. As of September 30, 2011 and 2010 and December 31, 2010, estimated liabilities for employee benefits amounted to Rp 39,391,313 thousand, Rp 24,841,886 thousand and Rp 37,652,205 thousand, respectively (Note 30).

e. Deferred Tax Assets

Deferred tax assets are recognized for all temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases to the extent that it is probable that taxable profit will be available against which the temporary differences can be utilized. Significant management estimates are required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. As of September 30, 2011 and 2010 and December 31, 2010, deferred tax assets amounted to Rp 10,104,995 thousand, Rp 6,519,073 thousand and Rp 9,670,219 thousand, respectively (Note 16).

f. Impairment of Non-Financial Assets

Impairment review is performed when certain impairment indicators are present. Determining the fair value of assets requires the estimation of cash flows expected to be generated from the continued use and ultimate disposition of such assets. Any significant changes in the assumptions used in determining the fair value may materially affect the assessment of recoverable values and any resulting impairment loss could have a material impact on results of operations.


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The carrying values of these assets are as follows:

December 31,2011 2010 2010

Rp '000 Rp '000 Rp '000

Investment properties 106,883 143,183 118,983 Property and equipment 120,501,246 74,961,144 96,679,399

Total 120,608,129 75,104,327 96,798,382


4. Investments

a. Time Deposits

September 30, (Unaudited) December 31,2011 2010 2010

Rp '000 Rp '000 Rp '000

Related party (Note 29)PT Bank Sinarmas Tbk

Rupiah 151,150,000 36,861,200 1,100,000U.S. Dollar (Note 32) 49,532,322 4,354,912 -

Total - related party 200,682,322 41,216,112 1,100,000

Third partiesRupiah

PT Bank Rakyat Indonesia (Persero) Tbk 1,000,000,000 - -PT Bank Negara Indonesia (Persero) Tbk 1,000,000,000 - -PT Bank Internasional lndonesia Tbk 681,490,000 78,380,000 8,024,000PT Bank Permata Tbk 510,000,000 10,000,000 -PT Bank Jabar Banten 500,000,000 - -PT Bank Pan Indonesia Tbk 500,000,000 - -PT Bank CIMB Niaga Tbk 500,000,000 - -PT Bank Bukopin Tbk 450,000,000 - 50,000,000PT Bank Tabungan Pensiunan Nasional 300,000,000 100,000,000 -PT Bank Mutiara Tbk 200,500,000 50,500,000 500,000PT Bank ICBC Indonesia 200,000,000 - -PT BPR Palu Lokadana Utama 30,000,000 - -PT BPR Modern Express 20,000,000 - -PT Bank ICB Bumiputera Tbk 5,000,000 5,000,000 -PT Bank Syariah Mandiri 3,600,000 600,000 -PT Bank Permata Tbk - Sharia Division 1,000,000 1,000,000 1,000,000PT Bank CIMB Niaga Tbk - Sharia Division 1,000,000 - -PT Bank Victoria International Tbk 400,000 10,400,000 200,000Others (each below Rp 100,000 thousand) 21,000 41,000 41,000

U.S. Dollar (Note 32)PT Bank Internasional lndonesia Tbk 20,019,387 38,515,984 -

Total - third parties 5,923,030,387 294,436,984 59,765,000

Total 6,123,712,709 335,653,096 60,865,000


- 26 -

Average interest rates per annum on time deposits:


Rupiah 6.25% - 12.00% 6.73% - 9.75% 7.00% - 10.00%U.S. Dollar 1.25% - 2.00% 1.75% - 2.25% -

b. Financial Assets at Fair Value Through Profit and Loss The detail of financial assets which are measured at FVPL are as follows:


Rp '000 Rp '000 Rp '000

Units of mutual fundRelated parties (Note 29)

RupiahSimas Danamas Mantap Plus 9,062,562 8,828,491 8,452,717Simas Danamas Saham 1,387,996 1,599,682 1,678,516

Total related parties 10,450,558 10,428,173 10,131,233

Third partiesRupiah

Kharisma Flexi Terbatas 3 1,859,551,151 6,730,110 6,934,480HPAM Maestro Flexi 1 1,175,671,812 688,465,899 326,567,073Syailendra Multi Strategi Fund I 1,094,678,775 - 74,963,663Cortina Bima Berimbang PT 756,158,100 238,009,502 236,834,230Si Dana Batavia VI 614,005,667 277,400,703 221,289,419Gani Penyertaan Terbatas PT 1 266,597,288 165,438,179 144,708,572Investa Fleksi IV PT 168,732,954 59,079,196 162,241,875Star Balanced 11,499,550 12,182,600 13,037,525Pratama Saham 8,405,658 - -Batavia Dana Saham 4,233,146 4,615,916 4,648,789Dana Pratama Ekuitas 2,701,741 3,117,397 3,335,944Nusadana Kombinasi Maxima 1,443,744 1,529,105 1,603,706Reksadana Mawar 1,173,737 1,180,066 1,236,178Others (each below Rp 1,000,000 thousand) 119,485 125,092 126,632

Total - Rupiah 5,964,972,808 1,457,873,765 1,197,528,086

U.S. Dollar (Note 32)Cortina Bima Berimbang Dollar 479,941,426 516,001,484 457,960,068HPAM Maestro Dollar I 124,491,814 - 17,406,609

Total - U.S. Dollar 604,433,240 516,001,484 475,366,677

Total - Third parties 6,569,406,048 1,973,875,249 1,672,894,763

Total - units of mutual funds 6,579,856,606 1,984,303,422 1,683,025,996


- 27 -


Rp '000 Rp '000 Rp '000

SharesRelated party (Note 29)

RupiahPT Pabrik Kertas Tjiwi Kimia Tbk 1,500,000 939,375 -

Third partiesRupiah

PT Bank Negara Indonesia (Persero) Tbk 396,917,375 693,990 334,011,438PT Indomobil Sukses Intl. Tbk 257,335,000 - -PT Salim Ivomas Pratama Tbk 113,284,650 - -PT Astra International Tbk 56,171,125 - 545,500PT Bank Danamon Indonesia Tbk 45,694,100 - -PT United Tractors Tbk 40,887,000 - 595,000PT Adaro Energy Tbk. 26,809,640 2,050,313 -PT Tambang Batu Bara Bukit Asam (Persero) Tbk 17,547,600 6,900,000 9,180,000PT Borneo Lumbung Energi & Metal Tbk. 12,403,930 - -PT Perusahaan Gas Negara Tbk 11,368,750 3,898,125 28,762,500PT Bank Mandiri (Persero) Tbk 7,452,900 180,000 1,137,500PT Bakrieland Development Tbk 6,608,000 - -PT Lippo Karawaci Tbk 6,460,000 - -PT Aneka Tambang (Persero) Tbk 5,850,750 4,692,975 981,225PT Indo Tambangraya Megah Tbk 5,279,125 - -PT Bakrie & Brothers Tbk 5,100,000 405,000 487,500PT Jasa Marga (Persero) Tbk 3,174,038 800,000 -PT Bank Rakyat Indonesia (Persero) Tbk 2,925,000 1,250,000 787,500PT Indofood Sukses Makmur Tbk 2,272,500 - 243,750PT International Nickel Indonesia Tbk. 1,912,500 1,551,250 2,071,875PT XL Axiata Tbk. 1,417,875 - -PT Energi Mega Persada Tbk 1,320,000 - 620,000PT Berau Coal Energy Tbk. 1,085,750 - -PT Bank Bukopin Tbk 1,041,880 - -PT Bumi Resources Tbk - 1,212,500 -PT Delta Dunia Makmur Tbk - 12,904,355 -PT Bakrie Telecom Tbk - - 20,039,860PT Wintermar Offshore Marine Tbk - - 1,920,000Others (each below Rp 1,000,000 thousand) 3,028,454 2,310,573 4,677,874

Total - Rupiah 1,033,347,942 38,849,081 406,061,522

U.S. Dollar (Note 32)Google 8,633,976 - -Citigroup Inc 7,966,540 - -JP Morgan Chase 7,959,175 - -Bank of America 7,662,140 - -Starbucks Corp 4,277,126 - -Cisco System Inc 4,273,641 - -General Electric 4,196,439 - -3M 3,800,419 - -Apache 3,433,594 - -

Total - U.S. Dollar 52,203,050 - -

Total - third parties 1,085,550,992 38,849,081 406,061,522

Total - shares 1,087,050,992 39,788,456 406,061,522

Total 7,666,907,598 2,024,091,878 2,089,087,518


- 28 -

c. Available for Sale Securities


Rp '000 Rp '000 Rp '000

SharesThird parties - Rupiah

PT Bumi Resources Tbk 58,700,592 678,091,245 643,396,907PT Indofood Sukses Makmur Tbk - 60,400 -PT Telekomunikasi Indonesia Tbk - 225,450 -

Unrealized gain (loss) on changes in fair value of available for sale securities (14,002,639) (11,041,095) 48,301,106

Fair value based on quoted market prices 44,697,953 667,336,000 691,698,013

d. Held to Maturity Financial Assets


Rp '000 Rp '000 Rp '000

BondsThird parties

RupiahGovernment Bond FR046 52,103,931 49,698,200 51,858,082Government Bond FR040 46,709,948 45,264,242 46,656,556Government Bond FR031 39,655,884 39,123,800 39,637,013Government Bond FR033 29,152,159 27,852,900 28,792,617Government Bond FR043 27,382,282 26,092,600 27,285,433Government Bond FR034 19,246,547 19,017,200 19,121,545Government Bond FR036 17,783,366 17,051,000 17,676,835Government Bond FR047 17,533,938 16,854,200 17,491,732Government Bond ZC003 16,817,072 14,521,300 15,000,106Government Bond IFR001 14,285,832 13,583,100 14,180,118Government Bond FR027 14,171,339 13,833,860 13,895,506Government Bond FR030 12,909,179 12,650,944 12,810,496Government Bond FR038 10,064,531 9,681,800 10,065,398Government Bond FR048 8,579,195 8,251,000 8,486,646Government Bond ZC005 7,942,430 6,909,940 7,250,593Government Bond FR044 7,063,130 6,809,400 7,011,704

Total - Rupiah 341,400,763 327,195,486 337,220,380

U.S. Dollar (Note 32)Majapahit Holdings BV (PLN) 2017 44,759,734 51,313,000 45,678,321Majapahit Holdings BV (PLN) 2016 18,531,025 20,703,680 18,993,464Mer-Lion Capital Funding 14,635,775 13,539,386 14,878,763PSA International Pte LId 13,533,931 13,452,871 13,798,650Republic of Indonesia 2019 12,139,007 13,742,960 12,643,038Arpeni Pratama Ocean Line 9,847,381 9,336,735 8,876,314Majapahit Holdings BV (PLN) 2037 8,654,810 10,976,520 8,817,270Helium Capital Ltd 6,873,699 6,858,854 6,992,463UBS-5YR Fixed Rate Note - 17,714,140 17,987,015

Total - U.S. Dollar 128,975,362 157,638,146 148,665,298

Total - Bonds 470,376,125 484,833,632 485,885,678


- 29 -

In accordance with Government Regulation No. 158/PMK.010/2008 dated October 28, 2008, guarantee fund also can be statutory time deposits or other obligation issued by the government. In compliance to the above regulation, the Company's investments in government bonds amounting to Rp 341,400,763 thousand, Rp 327,195,486 thousand, and Rp 337,220,380 thousand as of September 30, 2011 and 2010 and December 31, 2010, respectively, are maintained as guarantee funds. Details of held to maturity financial assets are as follows: Name of Bonds Maturity Date Interest Rate

UBS-5YR Fixed Rate Note September 20, 2011 9.35%Government Bond ZC003 November 20, 2012 9.87%Government Bond ZC005 February 20, 2013 9.41%Government Bond FR033 March 15, 2013 12.50%Arpeni Pratama Ocean Line May 3, 2013 8.75%Government Bond FR027 June 15, 2015 9.50%Government Bond IFR001 August 15, 2015 11.80%Government Bond FR030 May 15, 2016 10.75%Majapahit Holdings BV (PLN) 2016 October 17, 2016 7.75%Majapahit Holdings BV (PLN) 2017 June 28, 2017 7.25%Government Bond FR038 August 15, 2018 11.60%Government Bond FR048 September 15, 2018 9.00%Republic of Indonesia 2019 March 4, 2019 11.63%Government Bond FR036 September 15, 2019 11.50%Government Bond FR031 November 15, 2020 11.00%PSA International Pte Ltd February 11, 2021 3.88%Government Bond FR034 June 15, 2021 12.80%Helium Capital Ltd May 22, 2022 0.00%Government Bond FR043 July 15, 2022 10.25%Mer-Lion Capital Funding September 9, 2022 0.00%Government Bond FR046 July 15, 2023 9.50%Government Bond FR044 September 15, 2024 10.00%Government Bond FR040 September 15, 2025 11.00%Government Bond FR047 February 15, 2028 10.00%Majapahit Holdings BV (PLN) 2037 June 29, 2037 7.88%

e. Mortgage Loans This account represents mortgage loans which are collateralized by land and buildings. The mortgage loans have installment periods ranging from 5 up to 15 years, with annual interest rates ranging from 0% -18% in 2011 and 2010.


- 30 -

f. Policy Loans This account represents cash value provided in the form of loans to the policyholders.


Rp '000 Rp '000 Rp '000

Rupiah 617,300,470 200,136,984 374,352,009U.S. Dollar (Note 32) 77,063,083 20,151,790 40,924,983

Total 694,363,553 220,288,774 415,276,992

Interest rates per annum Rupiah 14.00% 9.00% - 18.00% 14.00% - 16.00%U.S. Dollar 6.00% 5.10% - 10.00% 6.00% - 14.00%

g. Investments in Shares of Stock

As of September 30, 2011 and 2010 and December 31, 2010, these represent investments in shares (cost method) of the following companies:


Rp '000 Rp '000 Rp '000

Aries Capital Partners II Limited 43,548,483 - -PT Rizki Lancar Sentosa 2,500,000 - -PT Damai Indah Padang Golf 139,800 139,800 139,800PT Sedana Golf 101,023 101,023 101,023PT Asuransi Maipark Indonesia 20,000 20,000 20,000

Total 46,309,306 260,823 260,823

In April 2011, the Company purchased 5,556 shares of Aries Capital Partner II, British Virgin Islands, amounting to Rp 43,548,483 thousand, or equivalent to 7.94% ownership interest. In May 2011, the Company purchased shares of PT Rizky Lancar Sentosa from PT Jasnita Investindo, previous shareholder, amounting to Rp 2,500,000 thousand. Management believes that the entire value of investments in shares of stock is recoverable, therefore, no impairment in value of this investment was recognized.

h. Investment Properties

The details and movement of investment properties are as follows:

January 1, September 30, 2010 Additions Deductions 2011

Rp '000 Rp '000 Rp '000 Rp '000

At costBuildings 484,000 - - 484,000

Accumulated depreciationBuildings 365,017 12,100 - 377,117

Net Book Value 118,983 106,883

Changes during 2011 (Nine months)


- 31 -

January 1, September 30, 2010 Additions Deductions 2010

Rp '000 Rp '000 Rp '000 Rp '000


Accumulated depreciationBuildings 340,817 - - 340,817



January 1, December 31, 2010 Additions Deductions 2010

Rp '000 Rp '000 Rp '000 Rp '000


Accumulated depreciationBuildings 340,817 24,200 - 365,017


Changes during 2010 (One year)

Depreciation of investment properties for the nine month periods ended September 30, 2011 and 2010 amounting to Rp 12,100 thousand and nil, respectively, are recorded as general and administrative expenses in the statements of comprehensive income. As of December 31, 2010, the fair value of investment properties based on valuation report of KJPP Lhot, Dolar & Rekan dated February 22, 2011 amounted to Rp 1,334,500 thousand. Management believes that there is no impairment in value of the aforementioned assets as of September 30, 2011 and 2010 and December 31, 2010.

5. Cash


Rp '000 Rp '000 Rp '000

Cash on hand 76,549 70,350 72,600

Cash in banksRelated party (Note 29)

PT Bank Sinarmas TbkRupiah 20,969,271 4,389,057 19,763,306U.S. Dollar (Note 32) 594,639 931,535 125,847

Total related party 21,563,910 5,320,592 19,889,153


- 32 -


Rp '000 Rp '000 Rp '000

Cash in banksThird parties

RupiahPT Bank Internasional lndonesia Tbk 4,333,140 3,575,286 3,071,365 PT Bank Central Asia Tbk 3,842,218 205,004 513,712 PT Bank CIMB Niaga Tbk 337,403 467,009 264,084 Deutsche Bank AG 280,524 166,330 183,659 PT Bank Jabar Banten Tbk 242,552 - - PT Bank Permata Tbk 185,042 - 36,404 PT Bank Bukopin Tbk 149,290 - 148,100 PT OCBC NISP Tbk 140,467 258,151 135,753 PT Bank Mandiri (Persero) Tbk 103,975 1,334,033 109,721 PT Bank Negara Indonesia (Persero) Tbk 42,230 166,971 53,284 PT Bank ICB Bumiputera Tbk 24,627 166,900 43,407 PT Bank Rakyat Indonesia (Persero) Tbk 5,687 6,722 184,688 PT BPR Modern Express - 1,750,656 1,414,110 PT BPR Irian Sentosa Pusat - 1,777,404 1,040,801 PT BPR Central Mitra Bawana - - 238,666 PT BPR Palu Poso - - 491,753 PT BPR Irian Biak - - 326,201 PT BPR Palu Masohi - - 402,175 PT BPR Kop. Pundi Makasar - 285,793 169,432 PT BPR Palu Toli - - 187,223 PT BPR Ambon Piru - - 161,316 PT BPR Buol - - 128,604 PT BPR Semarang - 185,864 125,160 PT BPR Sentosa - 190,982 227,660 Others (each below Rp 100,000 thousand) 247,168 420,901 964,718

Total- Rupiah 9,934,323 10,958,006 10,621,996

U.S. Dollar (Note 32)PT Bank Central Asia Tbk 1,064,797 382,546 394,926 PT Bank Internasional lndonesia Tbk 377,628 75,188 382,597 PT Bank Mega Tbk 10,085 22,760 16,399 PT Bank CIMB Niaga Tbk - - 1,626,758 PT Bank Mandiri (Persero) Tbk - - 116,778 PT Bank UOB Buana Tbk - 69,861 8,436

Total - U.S. Dollar 1,452,510 550,355 2,545,894

Singapore Dollar (Note 32)PT Bank Internasional Indonesia Tbk 611,019 - 600,381PT Bank OCBC NISP Tbk 222,879 1,110,598 177,378

Total- Singapore Dollar 833,898 1,110,598 777,759

Euro (Note 32)PT Bank Internasional Indonesia Tbk 11,798 - 11,100

Total third parties 12,232,529 12,618,959 13,956,749

Total - cash in banks 33,796,439 17,939,551 33,845,902


- 33 -


Rp '000 Rp '000 Rp '000

Funds placed in securities companies:Third parties - U.S. Dollar (Note 32)

Credit Suisse, Singapore 4,009 - 4,082 Salomon Smith Barney, Singapore 2,369 - - UBS, Singapore 16,877 - 431,445 Citigroup Consulting Group Account - - 1,150

Total fund placed in securities companies 23,255 - 436,677

Total - cash 33,896,243 18,009,901 34,355,179

6. Segregated Funds Net Assets and Contract Liabilities of Unit Link

Segregated Funds Net Assets

The details of segregated funds net assets of unit link are as follows:


Rp '000 Rp '000 Rp '000

Securities at fair value through profit and loss 5,184,140,857 5,360,715,236 5,965,514,294Time deposits 105,592,893 716,300,000 1,282,877,067Held to maturity securities 47,174,382 43,692,340 44,470,385Cash in banks 46,676,678 87,962,636 139,653,621Investment income receivables 2,406,720 2,522,871 2,271,336Other receivables 150,000 - -

Total 5,386,141,530 6,211,193,083 7,434,786,703

Securities at Fair Value through Profit And Loss


Rp '000 Rp '000 Rp '000

At fair value through profit and lossUnits of mutual fund

RupiahRelated party (Note 29)

Danamas Stabil 32,385,973 30,069,579 29,810,244


- 34 -


Rp '000 Rp '000 Rp '000

At fair value through profit and lossUnits of mutual fund

RupiahThird parties

Gani PT Pendapatan Tetap 1 1,428,397,088 1,414,199,835 1,380,509,131RDPT HPAM Maestro Flexi I 1,228,581,578 2,106,726,472 2,390,544,213Si Dana Batavia Terbatas VI 791,373,979 735,484,400 870,257,234RD Syailendra Multi Strategy Fund I 447,357,209 - 111,874,714Schroder Dana Terpadu II 366,589,035 316,814,180 332,338,810Kharisma Flexi Terbatas 3 105,000,145 - -Schroder Dana Prestasi Plus 73,381,792 79,706,550 80,037,246Fortis Ekuitas 71,176,382 75,944,132 78,432,655Schroder Syariah Balanced Fund 42,641,824 42,634,978 43,533,482Corfina Bima Berimbang Penyertaan Terbatas 34,901,454 - 32,089,283Schroder Dana Mantap Plus II 5,782,117 4,581,684 4,524,484Others (each below Rp 1,000,000 thousand) 873,213 942,704 969,815

Total- Third parties 4,596,055,816 4,777,034,935 5,325,111,067

Total Rupiah 4,628,441,789 4,807,104,514 5,354,921,311

U.S. Dollar (Note 32)Related party (see Note 29)

Danamas Dolar 137,761 23,601,405 23,510,279

Third partiesCorfina Bima Berimbang Dollar Penyertaan Terbatas 403,305,349 399,787,477 386,307,655HPAM Maestro Dollar I 87,073,258 27,656,339 164,703,453HPAM USD 31,534,264 - -

Total- Third Parties 521,912,871 427,443,816 551,011,108

Total U.S. Dollar 522,050,632 451,045,221 574,521,387

Total - units of mutual fund 5,150,492,421 5,258,149,735 5,929,442,698

BondsThird parties - U.S. Dollar

Renhe Commercial - 66,996,930 -


PT United Tractors Tbk 8,261,000 6,850,750 7,973,000PT Bank Mandiri (Persero) Tbk 6,684,300 6,876,000 6,207,500PT Astra International Indonesia Tbk 3,882,650 3,458,700 3,327,550PT Bank Pan Indonesia Tbk 2,522,325 4,423,770 4,423,770PT Bank Central Asia Tbk 2,679,600 2,331,600 2,227,200PT Gas Negara (Persero) Tbk 1,464,563 2,107,875 2,422,688PT Bank Rakyat Indonesia (Persero) Tbk 1,959,750 1,675,000 1,758,750PT Telekomunikasi Indonesia (Persero) Tbk 1,987,400 2,405,800 2,078,925PT Tambang Batubara Bukit Asam (Persero) Tbk 1,352,400 1,565,725 1,847,475PT Holcim Indonesia Tbk 1,022,610 1,393,163 1,292,625PT International Nickel Indonesia Tbk 815,238 1,313,813 1,313,813Others (each below Rp 1,000,000 thousand) 1,016,600 1,166,375 1,198,300

Total - shares 33,648,436 35,568,571 36,071,596

Total at fair value through profit and loss 5,184,140,857 5,360,715,236 5,965,514,294


- 35 -

Time Deposits


Rp '000 Rp '000 Rp '000

Related party (Note 29)PT Bank Sinarmas Tbk

Rupiah 96,800,000 476,300,000 276,175,000U.S. Dollar (Note 32) 8,690,655 - 22,567,410

Total - related party 105,490,655 476,300,000 298,742,410

Third partiesRupiah

PT Bank Internasional lndonesia Tbk 102,238 - -PT Bank Mutiara Tbk - 150,000,000 300,000,000PT Bank Bukopin Tbk - 90,000,000 350,000,000PT Bank Victoria International Tbk - - 310,200,000PT Bank Permata Tbk - - 10,000,000PT Bank ICB Bumiputera Tbk - - 5,000,000PT Bank Syariah Mandiri - - 600,000

U.S. Dollar (Note 32)PT Bank Internasional lndonesia Tbk - - 8,334,657

Total - third parties 102,238 240,000,000 984,134,657

Total 105,592,893 716,300,000 1,282,877,067

Interest rates per annum on time depositsRupiah 6.25% - 10.00% 6.25% - 10.00% 7.00% - 10.00%U.S. Dollar 0.15% - 0.15% - 1.50%

Held To Maturity Securities


Rp '000 Rp '000 Rp '000

BondsRelated party - Rupiah (Note 29)

Bumi Serpong Damai II Year 2006 3,000,000 3,000,000 3,000,000

Third partiesRupiah

Government Bond FR 023 5,905,812 5,870,000 5,878,735Government Bond FR 027 4,509,430 4,421,000 4,442,950

Total - rupiah 10,415,242 10,291,000 10,321,685

U.S. DollarMerrill Lynch 18,160,340 16,445,518 16,849,800Fortis Bangue Lu 15,598,800 13,955,822 14,298,900

Total - U.S. Dollar 33,759,140 30,401,340 31,148,700

Total - third parties 44,174,382 40,692,340 41,470,385

Total - held to maturity 47,174,382 43,692,340 44,470,385


- 36 -

Details of held to maturity securities are as follows: Bonds Maturity Date Interest Rate

Bumi Serpong Damai II Year 2006 October 20, 2011 15.00%Merrill Lynch December 12, 2012 0.00%FR0023 December 15, 2012 11.00%Fortis Bangue Lu May 30, 2013 0.00%FR027 June 15, 2015 9.50% Bumi Serpong Damai II Year 2006 has been settled by the issuer on the maturity date. Cash in Banks


Rp '000 Rp '000 Rp '000

Cash in BanksRupiah

Related party (Note 29)PT Bank Sinarmas Tbk 9,809,401 57,974,656 73,721,117

Third partiesPT Bank CIMB Niaga Tbk 33,483,694 22,276,487 30,945,274PT Bank Internasional lndonesia Tbk 1,582,418 823,380 441,002PT Bank Mega Tbk 5,886 - 6,048

Total - Rupiah 44,881,399 81,074,523 105,113,441

U.S. Dollar (Note 32)Related party (Note 29)

PT Bank Sinarmas Tbk 676,658 4,933,386 30,004,187

Third partiesPT Bank Internasional lndonesia Tbk 803,304 1,387,606 4,402,218PT Bank CIMB Niaga Tbk 295,322 567,121 112,419PT Bank Mega Tbk 19,995 - 21,356

Total - U.S. Dollar 1,795,279 6,888,113 34,540,180

Total - Cash in banks 46,676,678 87,962,636 139,653,621

Investment Income Receivables


Rp '000 Rp '000 Rp '000

RupiahInterest - Bonds 2,406,720 2,522,871 2,173,994Interest - Time deposits - - 97,029

U.S. Dollar (Note 32)Interest - Time deposits - - 313

Total 2,406,720 2,522,871 2,271,336


- 37 -

Segregated Funds Contracts Liabilities of Unit Link As of September 30, 2011 and 2010 and December 31, 2010, segregated funds contracts liabilities of unit link consist of liability for future policy benefits, estimated claims liability and unearned premiums.


Rp '000 Rp '000 Rp '000

Rupiah 4,595,308,031 5,630,278,013 6,442,187,363U.S. Dollar (Note 32) 507,790,021 492,397,279 612,522,591

Total 5,103,098,052 6,122,675,292 7,054,709,954

7. Segregated Funds Net Assets and Contract Liabilities of Sharia

Segregated Funds Net Assets of Sharia

The details of segregated funds net assets of sharia are as follows:


Rp '000 Rp '000 Rp '000

Securities at fair value through profit and loss 49,459,771 28,179,343 40,413,241Held to maturity securities 21,602,259 21,443,280 21,591,120Cash in banks 17,143,237 13,654,704 4,598,717Time deposits 8,600,000 7,000,000 10,000,000Premiums receivable - group insurance 1,896,906 821,647 1,194,673Investments income receivables - interest on bonds 396,114 298,586 504,456Property and equipment - net 357,855 24,845 21,153Reinsurance receivables 14,650 15,050 14,650

Total 99,470,792 71,437,455 78,338,010

Securities at Fair Value through Profit And Loss


Rp '000 Rp '000 Rp '000

Units of mutual fundThird parties - Rupiah

Schroder Syariah Balanced Fund 21,304,957 12,047,303 17,100,194Fortis Pesona Amanah 10,734,808 6,896,321 8,837,388I-Hajj Syariah Fund 4,904,407 1,236,396 7,389,993PNM Syariah - 2,241,931 -PNM Ekuitas Syariah - 763,153 -PNM Amanah Syariah fixed income 4,734,049 4,994,239 7,085,666

Total - units of mutual fund 41,678,221 28,179,343 40,413,241


- 38 -


Rp '000 Rp '000 Rp '000


PT United Tractors Tbk 2,332,000 - -PT Astra International Tbk 2,100,450 - -PT Tambang Batubara Bukit Asam (Persero) Tbk 1,276,800 - -PT Bumi Serpong Damai Tbk 959,175 - -PT Indo Tambangraya Megah Tbk 490,625 - -PT Semen Gresik (Persero) Tbk 622,500 - -

Total - shares 7,781,550 - -

Total 49,459,771 28,179,343 40,413,241

Held to Maturity Securities


Rp '000 Rp '000 Rp '000

Held to Maturity Financial AssetsBonds - RupiahSBSN IFR001 2008 7,570,370 7,384,150 7,506,098Sukuk Ijarah I Summarecon 2008 5,124,313 5,170,020 5,173,298Sukuk Ijarah Indosat III 2008 4,760,109 4,651,160 4,661,066Sukuk Ijarah Matahari Putra Prima IIA 2009 2,035,737 2,084,680 2,080,411Syariah Ijarah PLN I 2006 1,069,589 1,036,440 1,073,312Sukuk Ijarah Matahari Putra Prima lIB 2009 1,042,141 1,116,830 1,096,935

Total 21,602,259 21,443,280 21,591,120

Details of held to maturity securities are as follows: Bonds Maturity Date Interest Rate

Sukuk Ijarah Matahari Putra Prima IIA 2009 April 14, 2012 16.00%Sukuk Ijarah Indosat III 2008 April 9, 2012 10.25%Sukuk Ijarah I Summarecon 2008 June 25, 2013 14.10%Sukuk Ijarah Matahari Putra Prima IIB 2009 April 14, 2014 17.00%SBSN IFR001 2008 August 15, 2015 11.80%Syariah Ijarah PLN I 2006 June 21, 2016 13.60%


- 39 -

Cash in Banks


Rp '000 Rp '000 Rp '000

Cash in banksRupiah

Third partiesPT Bank Internasional lndonesia Tbk - Sharia Division 11,562,452 8,447,927 689,648PT Bank CIMB Niaga Tbk - Sharia Division 3,681,431 4,550,753 3,256,559PT Bank OCBC NISP Tbk - Sharia Division 1,017,729 - -PT Bank Muamalat Indonesia Tbk 744,465 356,169 434,557PT Bank Syariah Mandiri 122,758 190,999 208,982PT Bank Permata Tbk - Sharia Division - 105,913 2,751Others (each below Rp 100,000 thousand) 14,402 2,943 6,220

Total - cash in banks 17,143,237 13,654,704 4,598,717


Rp '000 Rp '000 Rp '000

Time deposit - RupiahRelated party (Note 29)

PT Bank Sinarmas Tbk - Sharia Division 2,000,000 7,000,000 7,000,000

Third partiesPT Bank CIMB Niaga - Sharia Division 3,100,000 - 1,000,000PT BCA Syariah 2,000,000 - -PT Bank Muamalat Indonesia Tbk 1,500,000 - 2,000,000

Total - third parties 6,600,000 - 3,000,000

Total - time deposits 8,600,000 7,000,000 10,000,000

Property and Equipment The detail and movements of property and equipment are as follows:

September 30,January 1, 2011

2011 Additions Deductions Reclassifications (Unaudited) Rp '000 Rp '000 Rp '000 Rp '000 Rp '000

At cost - 363,200 363,200 Computer 57,632 1,190 - - 58,822 Office furniture and equipment 4,062 - - - 4,062

Total 61,694 364,390 - - 426,084

Accumulated depreciationVehicle - 18,917 18,917 Computer 37,444 8,162 - - 45,606 Office furniture and equipment 3,097 609 - - 3,706

Total 40,541 27,688 - - 68,229




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September 30,January 1, 2010

2010 Additions Deductions Reclassifications (Unaudited) Rp '000 Rp '000 Rp '000 Rp '000 Rp '000

At costComputer 57,632 - - - 57,632 Office furniture and equipment 4,062 - - - 4,062

Total 61,694 - - - 61,694

Accumulated depreciationComputer 25,311 8,644 - - 33,955 Office furniture and equipment 2,285 609 - - 2,894

Total 27,596 9,253 - - 36,849



January 1, December 31, 2010 Additions Deductions Reclassifications 2010

Rp '000 Rp '000 Rp '000 Rp '000 Rp '000

At costComputer 57,632 - - - 57,632 Office furniture and equipment 4,062 - - - 4,062

Total 61,694 - - - 61,694

Accumulated depreciationComputer 25,311 12,133 - - 37,444 Office furniture and equipment 2,285 812 - - 3,097

Total 27,596 12,945 - - 40,541



Reinsurance Receivables As of September 30, 2011 and 2010 and December 31, 2010, reinsurance receivables represent receivables from PT Reasuransi International Indonesia. Segregated Funds Contracts Liabilities of Sharia As of September 30, 2011 and 2010 and December 31, 2010, segregated funds contract liabilities of sharia are liabilities to policyholders which consist of liability for future policy benefits, estimated claims liability and unearned premiums totalling to Rp 49,042,960 thousand, Rp 28,619,405 thousand and Rp 33,307,313 thousand, respectively.

8. Premiums Receivable


Rp '000 Rp '000 Rp '000

Group premiums - Rupiah 17,107,141 10,696,031 13,365,547Individual premiums

Rupiah 2,045,643 2,247,763 5,098,126U.S. Dollar (Note 32) 456,229 975,712 1,064,314

Total 19,609,013 13,919,506 19,527,987


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As of September 30, 2011 and 2010 and December 31, 2010, premiums receivable from related parties amounted to Rp 136,677 thousand, Rp 136,011 thousand and Rp 15,327 thousand, respectively (Note 29). As of September 30, 2011 and 2010 and December 31, 2010, no allowance for impairment on premiums receivable is provided as management believes that there is no objective evidence of impairment and the Company has a policy not to recognize premiums receivable which is beyond the grace period of two months (lapse).

9. Reinsurance Receivables


Rp '000 Rp '000 Rp '000

RupiahPT Reasuransi International Indonesia 853,634 269,472 853,634PT Reasuransi Nasionallndonesia 14,502 20,502 14,502PT Maskapai Reasuransi Indonesia Tbk 8,300 10,700 1,064,005PT Tugu Jasatama Reasuransi Indonesia 750 750 750

Sub total 877,186 301,424 1,932,891

U.S. Dollar (Note 32)PT Maskapai Reasuransi Indonesia Tbk - - 7,987

Total 877,186 301,424 1,940,878

As of September 30, 2011 and 2010 and December 31, 2010, management did not provide allowance for doubtful accounts since management believes that all reinsurance receivables are collectible.

10. Investment Income Receivables


Rp '000 Rp '000 Rp '000

RupiahBonds 5.476.566 5.476.566 9.327.327Policy loans 1.493.516 136.452 1.424.288Mortage loans 50.499 149.136 57.737Time deposits 20.612.005 576.257 17.250

Sub-total 27.632.586 6.338.411 10.826.602

U.S. Dollar (Note 32)Bonds 2.244.260 2.315.671 935.056Policy loans - 39.210Time deposits - - -

Sub-total 2.244.260 2.315.671 974.266

Total 29.876.846 8.654.082 11.800.868

As of September 30, 2011 and 2010 and December 31, 2010, investment income receivables from related parties amounted to Rp 822 thousand, Rp 2,726 thousand and Rp 2,565 thousand, respectively (Note 29).

As of September 30, 2011 and 2010 and December 31, 2010, management did not provide allowance for doubtful accounts since management believes that all investment income receivables are collectible.


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11. Other Receivables


Rp '000 Rp '000 Rp '000

Due from policyholders 3.225.647 1.793.630 3.640.355Employees and agents 449.131 411.799 539.185DPLK Sinarmas 129.394 5.000 186.885Others 159.223 24.592 16.917

Total 3.963.395 2.235.021 4.383.342

Due from policyholders represents receivables from policyholders whose medical claims are beyond the limit determined in the insurance policy and the Company has already made payment to hospitals.

Receivables from employees and agents represent loans with interest rates ranging from 10% - 12% per annum, which will be settled through deduction from employees' salaries or agents' incentives. The amount of other receivables written-off for the nine month periods ended September 30, 2011 and 2010 and December 31, 2010 amounted to Rp 547,398 thousand, Rp 358,499 thousand and Rp 396,096 thousand, respectively (Note 24).

12. Prepaid Expenses


Rp '000 Rp '000 Rp '000

Office rental and service charges 5,359,632 2,407,255 2,190,640Others 643,056 647,307 403,919

Total 6,002,688 3,054,562 2,594,559

As of September 2011 and 2010 and December 31, 2010, prepaid office rental and service charges to related party amounted to Rp 284,593 thousand, Rp 139,383 thousand and Rp 526,502 thousand, respectively (Note 29).

13. Property and Equipment

September 30, January 1, 2011

2011 Additions Deductions (Unaudited) Rp '000 Rp '000 Rp '000 Rp '000

At costLand 7,027,726 - - 7,027,726 Buildings 81,260,782 2,978,096 - 84,238,878 Building renovations

and improvements 10,361,138 3,075,759 (247,299) 13,189,598 Vehicles 18,687,513 23,390,600 (636,135) 41,441,978 Computer 22,606,067 4,370,330 (1,184,256) 25,792,141 Office fumiture and equipment 12,621,648 920,349 (379,258) 13,162,739 Communication equipment 1,727,402 179,715 (41,260) 1,865,857

Total 154,292,276 34,914,849 (2,488,208) 186,718,917



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Accumulated depreciationBuildings 18,376,977 3,076,233 - 21,453,210 Building renovations

and improvements 7,377,883 763,435 (247,299) 7,894,019 Vehicles 7,156,825 3,137,955 (617,819) 9,676,961 Computer 14,546,943 2,639,418 (1,168,952) 16,017,409 Office fumiture and equipment 8,759,787 1,291,040 (369,602) 9,681,225 Communication equipment 1,394,462 140,707 (40,322) 1,494,847

Total 57,612,877 11,048,788 (2,443,994) 66,217,671

Net Book Value 96,679,399 120,501,246





and improvements 8,855,763 1,126,930 - 9,982,693 Vehicles 11,188,563 2,187,400 (141,850) 13,234,113 Computer 18,838,603 3,283,775 (25,809) 22,096,569 Office fumiture and equipment 11,378,351 1,438,217 (290,983) 12,525,585 Communication equipment 1,537,383 205,942 (16,715) 1,726,610

Total 117,815,462 13,122,354 (475,357) 130,462,459


and improvements 6,514,437 678,125 - 7,192,562 Vehicles 5,819,084 1,728,150 (33,099) 7,514,135 Computer 11,677,823 2,028,525 (5,229) 13,701,119 Office fumiture and equipment 7,422,997 1,159,892 (272,373) 8,310,516 Communication equipment 1,231,707 121,356 (6,264) 1,346,799

Total 47,771,400 8,046,880 (316,965) 55,501,315

Net Book Value 70,044,062 74,961,144



Rp '000 Rp '000 Rp '000 Rp '000


and improvements 8,855,763 1,515,875 (10,500) 10,361,138 Vehicles 11,188,563 8,554,300 (1,055,350) 18,687,513 Computer 18,838,603 3,787,628 (20,164) 22,606,067 Office fumiture and equipment 11,378,351 1,534,280 (290,983) 12,621,648 Communication equipment 1,537,383 206,922 (16,903) 1,727,402

Total 117,815,462 37,870,714 (1,393,900) 154,292,276



- 44 -


Rp '000 Rp '000 Rp '000 Rp '000


and improvements 6,514,437 873,071 (9,625) 7,377,883 Vehicles 5,819,084 2,279,848 (942,107) 7,156,825 Computer 11,677,823 2,874,349 (5,229) 14,546,943 Office fumiture and equipment 7,422,997 1,610,607 (273,817) 8,759,787 Communication equipment 1,231,707 169,085 (6,330) 1,394,462

Total 47,771,400 11,078,585 (1,237,108) 57,612,877

Net Book Value 70,044,062 96,679,399


The Company owns several plots of land which are located in Java, Sumatera, Kalimantan and Sulawesi with the Right to Build (Hak Guna Bangunan) for a period of 15 to 25 years, which will be due in 2010 to 2032. Management believes that the term of the title of land can be extended upon expiration of the existing terms. Depreciation expense charged to general and administrative expenses for the nine month periods ended September 30, 2011 and 2010 amounted to Rp 11,048,788 thousand and Rp 8,046,880 thousand, respectively (Note 26). Deductions for the nine month periods ended September 30, 2011 and 2010 and for the year ended December 31, 2010 represent sale of property and equipment with details as follows:


Rp '000 Rp '000 Rp '000

Selling price 198,459 229,170 668,103Net book value 44,214 158,392 156,792

Gain on sale 154,245 70,778 511,311

All property and equipment are insured against all risks with PT Asuransi Sinar Mas, a related party, with the total coverage amount of Rp 178,487,196 thousand and US$ 4,035 thousand as of September 30, 2011, Rp 113,115,659 thousand and US$ 1,075 thousand as of September 30, 2010 and Rp 63,818,094 thousand and US$ 1,075 thousand as of December 31, 2010. The management believes that the insurance coverage is adequate to cover possible losses of the assets insured. Management believes that there is no impairment in value of aforementioned assets as of September 30, 2011 and 2010 and December 31, 2010.


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14. Liabilities to Policyholders

a. Liability for Future Policy Benefits

Liability for future policy benefits by type of insurance are as follows:


Rp '000 Rp '000 Rp '000

IndividualCombined endowment and/or endowment 6,191,524,214 2,223,306,491 2,120,342,381Whole life 220,675,442 212,748,580 216,970,397Non-Traditional 5,076,783 4,818,418 4,987,593Death Term Life 367,751 616,997 709,402

Sub total 6,417,644,190 2,441,490,486 2,343,009,773

GroupDeath Term Life 151,770,856 134,728,897 138,226,501Endowment 37,188 43,920 43,133

Sub-total 151,808,044 134,772,817 138,269,634

Total 6,569,452,234 2,576,263,303 2,481,279,407

The changes in liability for future policy benefits are as follows:


Rp '000 Rp '000 Rp '000

Balance at the beginning of the period 2,481,279,407 3,372,898,501 3,372,898,501Increase (decrease) in liability for future policy benefits 4,088,172,827 (796,635,198) (891,619,094)

Balance at the end of the period 6,569,452,234 2,576,263,303 2,481,279,407

The details of liability for future policy benefits by currencies are as follows:


Rp '000 Rp '000 Rp '000

Rupiah 5,704,813,691 2,057,058,093 1,952,149,984U.S. Dollar (Note 32) 864,580,785 519,155,427 529,081,646Singapore Dollar (Note 32) 57,758 49,783 47,777

Total 6,569,452,234 2,576,263,303 2,481,279,407

Liability for future policy benefits represents the amount set aside to provide for the benefits promised to policyholders under the terms of life insurance policies in force, which are determined in accordance with an actuarial calculation.


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As of September 30, 2011 and 2010 and December 31, 2010, liabilities for future policy benefits are based on the computation of an actuary, Herman Sulistyo, FSAI. The assumptions used in the computation are as follows:

1. For insurance policies issued from 1994:

Mortality Method of ReserveTable Actuarial Interest Computation

a. Individual:

Death term life CSO 1958 8% Net Level PremiumTMII 1993 2%, 8% Net Level Premium

Endowment CSO 1958 5% Net Level PremiumTMII 1993 8% Net Level PremiumReinsurance 9% Net Level Premium

Combined endowment CSO 1958 4%, 5%, 8% Net Level PremiumTMII 1993 2%, 3%, 4%, 8% Net Level PremiumCSO 1990 7% Net Level Premium

8%, 9% ZilmerTMII 1999 8%, 5% Net Level Premium

Whole life CSO 1958 4%, 7%, 8% Net Level PremiumTMII 1993 5%, 8%, 9% Net Level PremiumReinsurance 5%, 8%, 9% Zilmer

b. GroupDeath CSO 1958 4%, 8% Net Level Premium

Type of Insurance

2. For the insurance policies issued before 1994:

Mortality Method of ReserveTable Actuarial Interest Computation

a. Individual:

Death term life CSO 1958 8% ZilmerEndowment CSO 1958 4%, 6%, 7% ZilmerWhole life CSO 1958 6% Zilmer

b. GroupEndowment CSO 1958 6% Zilmer

Type of Insurance

The above methods used for the computation of liabilities for future policy benefits are prospective with linear interpolation.


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b. Estimated Claims Liability

The details of estimated claims liability by type of insurance are as follows:


Rp '000 Rp '000 Rp '000

Health 8,007,794 15,094,619 12,357,624Death term life 6,759,450 4,785,109 5,012,296Personal accident 500 - -

Total 14,767,744 19,879,728 17,369,920

The changes in estimated claims liability are as follows:


Rp '000 Rp '000 Rp '000

Balance at the beginning of the period 17,369,920 11,382,801 11,382,801Increase (decrease) in estimated claims liability (2,602,176) 8,496,927 5,987,119

Balance at the end of the period 14,767,744 19,879,728 17,369,920

The details of estimated claims liability by currencies are as follows:


Rp '000 Rp '000 Rp '000

Rupiah 14,043,492 19,001,201 16,497,319U.S. Dollar (Note 32) 724,252 878,527 872,601

Total 14,767,744 19,879,728 17,369,920

c. Claims Payable Claims payable represents liabilities to policyholders (participants) related to benefit claims, death claims, periodical claims and maturity claims that are already approved but not yet paid, including policy annulment and redemption of cash value. The details of claims payable by currencies are as follows:


Rp '000 Rp '000 Rp '000

Rupiah 37,774,169 41,472,721 81,168,264U.S. Dollar (Note 32) 20,458,693 11,863,445 2,725,843

Total 58,232,862 53,336,166 83,894,107


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d. Unearned Premiums Unearned premiums by type of insurance are as follows:


Rp '000 Rp '000 Rp '000

Individual:Health 1,964,207 1,054,694 1,356,006Personal accident 1,562,941 1,074,585 1,547,983Death term life 194 178 605

Sub total 3,527,342 2,129,457 2,904,594

Group:Health 20,875,062 16,415,409 14,340,799Death term life 659,505 484,172 383,852Personal Accident 288,651 298,054 191,267

Sub total 21,823,218 17,197,635 14,915,918

Total 25,350,560 19,327,092 17,820,512

The changes in unearned premiums are as follows:


Rp '000 Rp '000 Rp '000

Balance at the beginning of the period 17,820,512 17,372,879 17,372,879Increase in unearned premiums 7,530,048 1,954,213 447,633

Balance at the end of the period 25,350,560 19,327,092 17,820,512

The details of unearned premiums by currencies are as follows:


Rp '000 Rp '000 Rp '000

Rupiah 25,279,187 19,246,215 17,729,961U.S. Dollar (Note 32) 71,373 80,877 90,551

Total 25,350,560 19,327,092 17,820,512


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15. Reinsurance Payables


Rp '000 Rp '000 Rp '000

Third partiesPT Maskapai Reasuransi Indonesia Tbk 1,907,708 1,699,054 843,614PT Reasuransi International Indonesia 1,075,332 957,718 707,547PT Tugu Jasatama Reasuransi Indonesia 537,410 478,662 94,466PT Reasuransi Indonesia Syariah 261,892 138,000 75,908PT Reasuransi Nasional lndonesia 64,924 57,822 11,400

Total 3,847,266 3,331,256 1,732,935

Reinsurance payables represent insurance premiums due to the reinsurance companies based on reinsurance contract (treaty). As of September 30, 2011 and 2010, and December 31, 2010, the balance of reinsurance payables denominated in foreign currency amounted to US$ 43,274 (equivalent to Rp 381,806 thousand), US$ 4,244 (equivalent to Rp 37,876 thousand) and US$ 10,923 (equivalent to Rp 98,206 thousand) respectively (Note 32).

16. Taxation

Taxes Payable


Rp '000 Rp '000 Rp '000

Income taxes Article 4 (2) 94,457 77,124 51,215Article 21 1,350,351 829,284 966,789Article 23 37,228 177,629 7,807

Value added tax - 88,076 -

Total 1,482,036 1,172,113 1,025,811

The filing of tax returns is based on the Company’s own calculation of tax liabilities (self-assessment). Based on the third amendment of the General Taxation Provisions and Procedures No. 28 Year 2007, the time limit for the tax authorities to assess or amend taxes was reduced from 10 to 5 years, subject to certain exceptions, since the tax became payable and for year 2007 and prior years, the time limit will end at the latest on fiscal year 2013.


- 50 -

Income Tax a. Current Tax

A reconciliation between income before tax per statements of comprehensive income and accumulated fiscal losses is as follows:

September 30, (Unaudited)2011 2010

Rp '000 Rp '000

Income before tax per statements of comprehensive income 997,049,720 236,134,838

Temporary difference - Employees' benefits 1,739,108 7,300,000

Permanent differences:Marketing expense 4,035,023 2,446,940General and administrative expenses 1,660,196 2,322,242Depreciation expense 629,234 (2,836,264)Write off of other receivables 547,398 358,499Salaries and allowance 114,626 60,381Increase in estimated claims liability (2,602,175) (8,496,927)Income already subjected to final tax (650,157,222) (102,236,667)Unrealized gain on changes in fair value of

securities and mutual funds (763,287,645) (830,986,831)

Total (1,409,060,565) (939,368,627)

Fiscal lossess (410,271,737) (695,933,789)

Accumulated fiscal loss - beginning of the period (2,330,568,813) (1,599,609,762)Adjustment of fiscal losses based on

tax assessment for year 2006 - 55,112,187Adjustment of fiscal loss - 26,380,746

Accumulated fiscal loss - end of the period (2,740,840,550) (2,214,050,618)

No provision for current tax expenses in 2011 and 2010 since the Company is in fiscal loss position in those periods. As of September 30, 2011 and 2010 and December 31, 2010, management believes that the accumulated tax losses are not fully recoverable; therefore, the Company did not recognize the deferred tax asset on accumulated fiscal losses. According to tax regulation, fiscal losses can be carried forward and applied against the taxable income immediately within five (5) years after such fiscal losses were incurred.


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b. Deferred Tax The details of deferred tax assets (liabilities) and are as follows:

Credited Credited (charged) to (charged) tostatement of statement of

comprehensive September 30, comprehensive September 30,January 1, income 2010 January 1, income 2011

2010 for the period (Unaudited) 2011 for the period (Unaudited)Rp '000 Rp '000 Rp '000 Rp '000 Rp '000 Rp '000

Estimated liabilities for employee benefits 5,130,001 1,080,471 6,210,472 9,413,051 434,777 9,847,828

Allowance for doubtful accounts 308,601 - 308,601 257,167 - 257,167Fiscal losses 20,046,557 (20,046,557) - - - - Adjustment on changes tax rate (189,084) 189,084 - - - - Depreciation expense (2,508,123) - (2,508,123) (2,007,130) - (2,007,130)Deferred acquisition cost (9,646,867) 1,975,270 (7,671,597) (8,039,056) 1,304,331 (6,734,725)

Net 13,141,085 (16,801,732) (3,660,647) (375,968) 1,739,108 1,363,140

Credited (charged) tostatement of

January 1, comprehensive income December 31,2010 for the period 2010

Rp '000 Rp '000 Rp '000

Estimated liabilities for employee benefits 5,130,001 4,283,050 9,413,051

Allowance for doubtful accounts 308,601 (51,433) 257,168Fiscal losses 20,046,557 (20,046,557) - Adjus tment on changes tax rate (189,084) 189,084 - Depreciation expense (2,508,123) 500,992 (2,007,131)Deferred acquis ition cost (9,646,867) 1,607,811 (8,039,056)

Net 13,141,085 (13,517,053) (375,968)

In September 2008, Law No. 7 Year 1983 regarding “Income Tax” has been revised with Law No. 36 Year 2008. The revised Law stipulates changes in corporate income tax rates, from progressive tax rates to a flat rate of 28% for fiscal year 2009 and 25% for fiscal year 2010 onwards.

As of December 31, 2010, the Company received a Letter of Tax Underpayment (SKPKB) of the Income Tax and Value Added Tax for the fiscal years 2002, 2003, 2004, 2005 and 2006 amounting to Rp 811,978,018. The Company also received Tax Collection (STP) on Value Added Tax for the fiscal years 2000, 2002, 2005 and 2006 amounting to Rp 86,198,021. The Company has paid all tax assessments and STP. Payments of all taxes were recorded as general and administrative expense taxes. A reconciliation between the deferred tax expense (benefit) and the amounts computed by applying the effective tax rate to income before tax per statements of comprehensive income is as follows:

September 30,(Unaudited)

2011 2010Rp '000 Rp '000

Income before tax perstatements of comprehensive income 997,049,720 236,134,838

Tax expense (benefit) at effective tax rates 249,262,430 59,033,710


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September 30,(Unaudited)

2011 2010Rp '000 Rp '000

Permanent differences:Marketing expenses 1,008,756 611,735 General and administrative expenses 415,049 580,561 Depreciation expense 157,309 (709,066) Write off of other receivable 136,850 89,625 Employee benefits 28,657 15,095 Increase on estimated claim liability (650,544) (2,124,232) Income already subjected to final tax (162,539,306) (25,559,167) Unrealized gain on changes in fair value of

securities and mutual funds (190,821,911) (207,746,708)

Net (352,265,140) (234,842,157)

Total (103,002,710) (175,808,447)

Unrecognized deferred tax on fiscal losses 102,567,934 173,983,448Adjustment on deferred tax (1,304,331) 17,206,906Effect of changes in tax rate - 1,419,825

Tax expense (benefit) (1,739,107) 16,801,732

17. Accrued Expenses


Rp '000 Rp '000 Rp '000

Contest (incentives to marketing agent) 4,282,443 1,656,653 2,769,012Professional fees - - 72,600Others 3,372,600 - 400,000

Total 7,655,043 1,656,653 3,241,612

18. Other Liabilities


Rp '000 Rp '000 Rp '000

RupiahPolicyholders 43,378,360 24,283,776 68,165,337Tabarru fund 2,883,541 - -Dividends payable 2,553,922 - -Custody payable 673,386 296,088 376,977Others 97,968,036 158,648,288 85,565,052

Sub-total 147,457,245 183,228,152 154,107,366

U.S. Dollar (Note 32)Policyholders 3,388,736 2,029,157 3,517,041Others 46,864,575 4,216,267 40,279,568

Sub-total 50,253,311 6,245,424 43,796,609

Total 197,710,556 189,473,576 197,903,975


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Tabarru fund is the fund establish from contribution, investment income, and accumulated tabarru funds underwriting surplus reserve which is allocated to tabarru fund. Others include unidentified premiums received and premiums in process of reconciliation with customers.

19. Fair Value of Financial Assets and Financial Liabilities Fair value is defined as the amount at which the financial instruments could be exchanged in a current transaction between knowledgeable, willing parties in an arm’s length transaction, other than in a forced sale or liquidation. Fair values are obtained from quoted prices, discounted cash flows model, as appropriate. The following table sets forth the carrying amounts and estimated fair values of the Company’s financial assets and liabilities:

Carrying valueEstimated Fair

ValuesRp '000 Rp '000

Financial AssetsAt fair value through profit and loss

Investment - FVPL - shares 1,087,050,992 1,087,050,992 Investment - FVPL - units of mutual fund 6,579,856,606 6,579,856,606 Segregated funds net assets unit link - shares 33,648,436 33,648,436 Segregated funds net assets unit link - units of mutual fund 5,150,492,421 5,150,492,421 Segregated funds net assets sharia - shares 7,781,550 7,781,550 Segregated funds net assets sharia - units of mutual fund 41,678,221 41,678,221

Held to maturityInvestment - HTM - bonds 470,376,125 579,569,870 Segregated funds net assets unit link - bonds 47,174,382 52,292,544 Segregated funds net assets sharia - bonds 21,602,259 22,756,895

Available for saleInvestment - AFS - shares 44,697,900 44,697,900 Investment in shares of stock 46,309,306 46,309,306

Loans and receivablesCash 33,896,243 33,896,243 Investment - time deposits 6,123,712,709 6,123,712,709 Investment - mortgage loans 13,371,611 13,371,611 Investment - policy loans 694,363,553 694,363,553 Segregated funds net assets unit link - time deposits 105,592,893 105,592,893 Segregated funds net assets unit link - cash in banks 46,676,678 46,676,678 Segregated funds net assets unit link - investment income receivables 2,406,719 2,406,719 Segregated funds net assets unit link - other receivables 150,000 150,000 Segregated funds net assets sharia - time deposits 8,600,000 8,600,000 Segregated funds net assets sharia - cash in banks 17,143,237 17,143,237 Segregated funds net assets sharia - investment income receivables 396,114 396,114 Investment income receivables 29,876,846 29,876,846 Other receivables 3,963,395 3,963,395 Guarantee deposits 793,433 793,433

Total financial assets 20,611,611,629 20,727,078,172

Financial LiabilitiesAccrued expenses 7,655,043 7,655,043 Other liabilities 197,710,556 197,710,556

Total financial liabilities 205,365,599 205,365,599

September 30, 2011 (Unaudited)


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Investment - FVPL - shares 39,788,456 39,788,456 Investment - FVPL - units of mutual fund 1,984,303,422 1,984,303,422 Segregated funds net assets unit link - shares 35,568,571 35,568,571Segregated funds net assets unit link - units of mutual fund 5,258,149,735 5,258,149,735Segregated funds net assets unit link - bond 66,996,930 66,996,930Segregated funds net assets sharia - units of mutual fund 28,179,343 28,179,343

Held to maturityShort term investment - HTM - bonds 484,833,632 569,855,138 Segregated funds net assets unit link - bonds 43,692,340 52,294,800 Segregated funds net assets sharia - bonds 21,443,280 23,885,300

Available for saleInvestment - AFS - shares 667,336,000 667,336,000 Investment in shares of stock 260,823 260,823

Loans and receivablesCash 18,009,901 18,009,901 Investment - time deposits 335,653,096 335,653,096 Investment - mortgage loans 27,950,867 27,950,867 Investment - policy loans 220,288,774 220,288,774 Segregated funds net assets unit link - time deposits 716,300,000 716,300,000 Segregated funds net assets unit link - cash in banks 87,962,636 87,962,636 Segregated funds net assets unit link - investment income receivables 2,522,871 2,522,871 Segregated funds net assets sharia - time deposits 7,000,000 7,000,000 Segregated funds net assets sharia - cash in banks 13,654,704 13,654,704 Segregated funds net assets sharia - investment income receivables 298,586 298,586 Investment income receivables 8,654,082 8,654,082 Other receivables 2,235,021 2,235,021 Guarantee deposits 415,335 415,335






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Investment - FVPL - shares 406,061,522 406,061,522 Investment - FVPL - units of mutual fund 1,683,025,996 1,683,025,996 Segregated funds net assets unit link - shares 36,071,596 36,071,596 Segregated funds net assets unit link - units of mutual fund 5,929,442,698 5,929,442,698 Segregated funds net assets sharia - units of mutual fund 40,413,241 40,413,241

Held to maturityInvestment - HTM - bonds 485,885,678 522,851,709 Segregated funds net assets unit link - bonds 44,470,385 48,349,121 Segregated funds net assets sharia - bonds 21,591,120 23,590,894

Available for saleInvestment - AFS - shares 691,698,013 691,698,013 Investment in shares of stock 260,823 260,823

Loans and receivablesCash 34,355,179 34,355,179 Investment - time deposits 60,865,000 60,865,000 Investment - mortgage loans 15,009,727 15,009,727 Investment - policy loans 415,276,992 415,276,992 Segregated funds net assets unit link - time deposits 1,282,877,067 1,282,877,067 Segregated funds net assets unit link - cash in banks 139,653,621 139,653,621 Segregated funds net assets unit link - investment income receivables 2,271,336 2,271,336 Segregated funds net assets sharia - time deposits 10,000,000 10,000,000 Segregated funds net assets sharia - cash in banks 4,598,717 4,598,717 Segregated funds net assets sharia - investment income receivables 504,456 504,456 Investment income receivables 11,800,868 11,800,868 Receivable from sale of investment 731,875 731,875 Other receivables 4,383,342 4,383,342 Guarantee deposits 407,412 407,412




December 31, 2010

Fair value of investments, segregated funds net assets - unit link, and segregated funds net assets – sharia (shares and warrant that are traded in Indonesia Stock Exhange, and bonds) based on market price, fair value of investment, segregated funds net assets - unit link, and segregated funds net assets – sharia (unit mutual fund) were based on published net asset value. There is no reliable basis for measuring the fair value of certain investment in shares of stock (Note 4), thus, the investments in shares are stated at cost. Fair value of cash, investment - time deposits, segregated funds net assets – unit link (cash in banks, time deposits, investment receivable and other receivable), segregated funds net assets – sharia (cash in banks, time deposits and investment receivable), investment income receivables, other receivables, guarantee deposits, accrued expenses and other liabilities approximates the carrying value due to short-term nature of transactions.


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20. Capital Stock The composition of the Company's shareholders as of September 30, 2011 and 2010 and December 31, 2010 is as follows:

Number of Percen tageShares of Ownership Total

% Rp '000

PT S inar Mas Mu ltiartha Tbk 52,500 50.000 52,500,000Mitsui Sumitomo Insurance Co. L td. 52,500 50.000 52,500,000

Total 105,000 100.000 105,000,000

Name of Stockholder

September 30, 2011 (Unaud ited)

Number o f PercentageShare of Ownership Total

% Rp '000

PT S inar Mas Multiartha Tbk 52,499 99.999 52,499,000PT Shinta Utama 1 0 .001 1,000

To tal 52,500 100 .000 52,500,000

Name of S tockho lder

September 30 , 2010 (Unaudi ted)December 31, 2010 (Audited) and

Based on Notarial Deed of Notary Linda Herawati, S.H., No. 32 dated June 30, 2011 which was approved by the Minister of Law and Human Rights of the Republic of Indonesia in his Decision Letter No. AHU-32784.AH.01.02. Year 2011 dated July 1, 2011, the shareholders agreed to approve the following: - Increase in the Company's authorized-capital stock from Rp 100,000,000 thousand consisting of

100,000 shares to Rp 105,000,000 thousand consisting of 105,000 shares. - Increase in the Company's issued and fully paid capital from Rp 52,500,000 thousand divided into

52,500 shares to Rp 105,000,000 thousand divided into 105,000 shares by issuing 52,500 new shares that was fully paid for by Mitsui Sumitomo Insurance Co. Ltd. in cash which was placed in a restricted bank account amounting to Rp 7,000,000,000. Capital stock, other capital stock and other capital contributions amounted to Rp 47,500,000 thousand, Rp 5,000,000 thousand and Rp 6,947,500,000 thousand, respectively.

- The Company’s shares owned by PT Shinta Utama has been sold to PT Sinar Mas Multiartha Tbk

(SMMA) amounting to Rp 1,000 thousand equivalent to 1 share, and the interest of ownership SMMA become 50%.

- Change of the Company's name to “PT Asuransi Jiwa Sinarmas MSIG" or "Sinarmas MSIG Life".

21. Dividends

Based on the Notarial Deed No. 1 dated May 18, 2011 of Syofilawati, SH, public notary in Jakarta, the shareholders approved the distribution of interim cash dividend for 2011 amounting to Rp 765,270,521 thousand.


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22. Premium Income

This account consists of:

September 30, (Unaudited) (Nine Months)2011 2010

Rp '000 Rp '000

New business 9,618,477,736 6,201,294,290Existing business 187,394,898 190,764,266

Total 9,805,872,634 6,392,058,556

Premium income represents premiums received from policyholders based on short-term and long-term contracts. Premium income by type of insurance is as follows:


Rp '000 Rp '000

IndividualUnit link 5,037,465,005 5,796,225,663Combined endowment 4,619,463,665 480,090,612Whole life 10,281,820 11,090,264Death term life 3,098,718 3,949,450Health 2,215,779 1,622,168Personal accident 1,807,537 575,195

Sub-total 9,674,332,524 6,293,553,352

GroupDeath term life 71,240,966 44,986,335 Health 50,674,321 51,991,990 Unit link 8,374,827 - Personal accident 1,249,996 1,524,984 Endowment - 1,895

Sub-total 131,540,110 98,505,204

Total 9,805,872,634 6,392,058,556

Combined endowment is an insurance product providing life protection, as well as savings. For the nine month periods ended September 30, 2011 and 2010, premium income received from related parties amounted to Rp 2,727,881 thousand and Rp 1,931,623 thousand, respectively (Note 29).


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23. Investment Income - Net


Rp '000 Rp '000

Interest on:Time deposits 144,729,314 28,711,327Bonds 37,788,743 54,319,662Mortgage loans 1,265,205 1,684,175Policy loans 382,945 484,155

Net realized gain on disposal of investments in trading securities and available for sale 1,033,801,802 391,344,498

Net unrealized gain on increase in fair value of investment in trading securities 180,839,614 485,668,977

Mutual funds 7,080,167 4,932,754Dividend 12,302,702 13,847,856Investment expenses (2,059,865) (2,983,123)

Net 1,416,130,627 978,010,281

For the nine month periods ended September 30, 2011 and 2010, investment income received from related parties amounted to Rp 8,050,616 thousand and Rp 5,357,785 thousand, respectively (Note 29).

24. Other Income - Net


Rp '000 Rp '000

Interest income from current accounts 26,865,671 2,465,926Gain on foreign exchange - net 5,480,512 5,691,187Management fee - DPLK Sinarrnas 336,295 123,416Interest on loans to employees and agents 66,686 15,913Gain on sale of property and equipment (Note 13) 154,245 70,778Bank administration charges (524,251) (503,159)Other receivables written-off (547,398) (358,499)Others 608,357 5,715,057

Net 32,440,117 13,220,619

For the nine month periods ended September 30, 2011 and 2010, other income received from related parties amounted to Rp 835,343 thousand and Rp 149,667 thousand, respectively (Note 29).

25. Claims and Benefit Expense


Rp '000 Rp '000

Surrender & redemption 7,286,679,621 4,393,344,701Maturity & periodical 568,610,775 545,013,556Death 34,555,545 25,682,626Health 26,916,033 26,006,391Others 596,796 11,321

Total 7,917,358,770 4,990,058,595

For the nine month periods ended September 30, 2011 and 2010, claim and benefits expenses paid to related parties amounted to Rp 1,116,278 thousand and Rp 1,149,325 thousand, respectively (Note 29).


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26. General and Administrative Expenses


Rp '000 Rp '000

Salaries and allowances 47,619,560 33,235,561Depreciation expense (Notes 4 and 13) 11,088,576 8,057,595Professional fees 6,206,787 9,045,962Communications 5,401,002 4,691,238Travel and transportation 4,586,928 3,573,829Repairs and maintenance 3,103,747 2,493,284Water and electricity 2,223,101 1,681,742Education and training 2,210,300 2,658,547Business trips 1,828,969 1,192,429Rental 1,744,473 1,246,956Employees' benefits (Note 30) 1,739,108 7,300,000Computer 966,534 673,321Foreign workers 929,409 872,187Printing 920,975 802,354Stationery and office supplies 891,215 745,220Licenses and permits 747,350 644,205Housekeeping 681,694 476,225Employee social security 615,205 524,208Pension 359,530 20,355Stamp duty 331,920 228,910Insurance 266,619 186,884Others (each below Rp 200,000 thousand) 629,576 1,425,716

Total 95,092,578 81,776,728

For the nine month periods ended September 30, 2011 and 2010, rental and insurance expenses paid to related parties amounting to Rp 549,275 thousand and Rp 418,148 thousand, respectively (Note 29).

27. Acquisition Expenses

This account consists of costs related to new insurance contracts or renewals, including commissions and other expenses, with details as follows:


Rp '000 Rp '000

Commissions 48,425,905 22,516,813Medical check up for prospective clients 502,554 619,511

Total 48,928,459 23,136,324


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28. Marketing Expenses

This account consists of expenses not directly related to the policy statement with details as follows:


Rp '000 Rp '000

Advertising and promotion 12,973,215 921,945Contest 2,332,996 1,772,359Conferences and meetings 899,989 1,220,147Entertainment and representation 966,681 414,242Others 188,350 60,675

Total 17,361,231 4,389,368

29. Nature of Relationship and Transactions with Related Parties

Nature of Relationship The related parties of the Company are companies under the Sinar Mas Group.

Transactions with Related Parties In the normal course of business, the Company entered into certain transactions with related parties. Significant balances of related parties accounts in the statements of financial position as of the statement of financial position dates are as follows:

Percentage to Percentage to Percentage toCarrying Total Assets/ Carrying Total Assets/ Carrying Total Assets/Amount Liabilities Amount Liabilities Amount LiabilitiesRp '000 % Rp '000 % Rp '000 %

ASSETS

InvestmentsTime deposits

PT Bank Sinarmas Tbk 200,682,322 0.01 41,216,112 0.00 1,100,000 0.00Units of mutual fund

Simas Danamas Mantap Plus 9,062,562 0.00 8,828,491 0.00 8,452,717 0.00Simas Danamas Saham 1,387,996 0.00 1,599,682 0.00 1,678,516 0.00

SharesPT Pabrik Kertas Tjiwi Kimia Tbk 1,500,000 0.00 939,375 0.00 - 0.00

Total 212,632,880 0.01 52,583,660 0.00 11,231,233 0.00

CashPT Bank Sinarmas Tbk 21,563,910 0.00 5,320,592 0.00 19,889,153 0.00

December 31, 2010September 30, 2010 (Unaudited)September 30, 2011 (Unaudited)


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Percentage to Percentage to Percentage toCarrying Total Assets/ Carrying Total Assets/ Carrying Total Assets/Amount Liabilities Amount Liabilities Amount LiabilitiesRp '000 % Rp '000 % Rp '000 %

ASSETS

Segregated funds net assets of unit linkTime deposits

PT Bank Sinarmas Tbk 105,490,655 0.01 476,300,000 0.05 298,742,410 0.03Bonds

PT Bumi Serpong Damai Tbk 3,000,000 0.00 3,000,000 0.00 3,000,000 0.00Units of mutual fund

Danamas Stabil 32,385,973 0.00 30,069,579 0.00 29,810,244 0.00Danamas Dollar 137,761 0.00 23,601,405 0.00 23,510,279 0.00

Cash PT Bank Sinarmas Tbk 10,486,059 0.00 62,908,042 0.01 103,725,304 0.01

Investment income receivablesPT Bank Sinarmas Tbk - 0.00 117,677 0.00 53,806 0.00PT Bumi Serpong Damai Tbk 74,375 0.00 74,375 0.00 72,000 0.00

Total 151,574,823 0.01 596,071,078 0.06 458,914,043 0.04

Segregated funds net assets of shariaTime deposits

PT Bank Sinarmas Tbk 2,000,000 0.00 7,000,000 0.00 7,000,000 0.00

Premiums receivable 136,677 0.00 136,011 0.00 15,327 0.00

Investment income receivablesTime deposits

PT Bank Sinarmas Tbk 822 0.00 2,726 0.00 2,565 0.00

Prepaid expensesPT Sinarmas Teladan 284,593 0.00 139,383 0.00 526,502 0.00

Guarantee depositsPT Sinarmas Teladan 73,898,359 0.00 4,693,023 0.00 4,693,023 0.00

LIABILITIES

Unearned premiums 976,403 0.00 1,010,468 0.00 666,063 0.00

Estimated claims liability 273,662 0.00 236,623 0.00 300,361 0.00

December 31, 2010September 30, 2010 (Unaudited)September 30, 2011 (Unaudited)

a. For the nine month periods ended September 30, 2011 and 2010, the premium income from

related parties amounted to Rp 2,727,881 thousand, Rp 1,931,623 thousand, respectively, or 0.03%, of the respective total premium income.

b. For the nine month periods ended September 30, 2011 and 2010, the investment income from

related parties amounted to Rp 8,050,616 thousand and Rp 5,357,785 thousand, or 0.57% and 0.55%, respectively, of the total investment income.

c. For the nine month periods ended September 30, 2011 and 2010, the other income from related

parties amounted to Rp 835,343 thousand and Rp 149,667 thousand, or 2.58% and 1.13%, respectively, of the total other income.

d. For the nine month periods ended September 30, 2011 and 2010, the claims and benefits

expense paid to related parties amounted to Rp 1,116,278 thousand and Rp 1,149,325 thousand, or 0.01% and 0.02%, respectively, of the total claims and benefits expenses.

e. For the nine month periods ended September 30, 2011 and 2010, the general and administrative

expenses - rental and insurance on transactions with related parties amounted to Rp 549,275 thousand and Rp 418,148 thousand, or 0.58% and 0.51%, respectively, of the total general and administrative expenses.


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f. The Company provides compensation to the key management personnel as follows:

September 30, (Nine Months) (Unaudited)

2011 2010Rp '000 Rp '000

Short-term benefits 21,587,611 13,011,459Post-employment benefits 30,814,826 21,454,148Termination benefits 27,167,457 18,872,092

Total 79,569,894 53,337,699

g. The Company insured its property and equipment with PT Asuransi Sinar Mas (ASM). h. Transactions with related parties are done under the same terms and conditions as done with third

parties.

30. Employee Benefits The amount of employees' benefits is determined based on the provision of Labor Law No, 13 Year 2003 dated March 25, 2003. No funding of the employees' benefits has been made by the Company. Employees' benefits expense is presented as part of "General and administrative expenses" (Note 26) in the statements of comprehensive income. Movements in estimated liabilities for employees' benefits are as follows:


Rp '000 Rp '000 Rp '000

Estimated liabilities for employees' benefitsat the beginning of the period 37,652,205 17,541,886 17,541,886

Employees' benefits expenses during the period 1,739,108 7,300,000 20,110,319

Estimated liabilities for employees' benefitsat the end of the period 39,391,313 24,841,886 37,652,205

No actuarial computation has been made on the reporting date considering that there was no change in these data for the nine month periods ended September 30, 2011 and 2010. The expense for this period in respect of post employement benefit obligation is for nine months of the expenses calculated for 2011 and 2010 on the basis of the actuarial assumptions as of December 31, 2010 and 2009. The employees' benefits were based on internal computation with the following assumptions: Discount rate 9%Salary increase rate 10%Mortality rate CSO 80Normal retirement 55 years


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31. Reinsurance Contract

For the purpose of managing risk exposure on insurance policies in excess of the Company's own retention risk, the Company entered into reinsurance contracts with local reinsurance companies. Policies that are reinsured include individual and group policies.

32. Capital Management and Financial Risk Management Objectives and Policies Capital Management

The primary objective of the Company’s capital management is to ensure that it maintains healthy capital in order to support its business and maximize shareholder value as well as maintain an optimal capital structure to reduce the cost of capital.

The Company manages its capital structure and makes adjustment in light of changes in economic conditions.

The Company’s capital structure consists of capital stock, retained earnings and other components of equity. Financial Risk Management Objectives and Policies The Company has risk exposures on financial instruments in the form of market price risk, foreign exchange rate risk, credit risk, interest rate risk and liquidity risk. Management policy on financial risk is intended to minimize potential adverse and financial impacts that may arise from such risks. In this regard, management does not allow any speculative derivative transactions. The following is a summary of the policy and financial risk management objectives: a. Market Price Risk

Market price risk is the risk of fluctuations in the value of financial instruments as a result of changes in market price. The investments are classified as fair value through profit and loss securities and available for sale securities in which will affect the profit and loss and equity of the Company if there is any change in price. The purpose of the management policy on price risk is to reduce and control risks at acceptable parameters and achieve an optimal return on investment at the same time. In this regard, management performs a review on the securities performance periodically and simultaneously with the portfolio diversification and examination of the relevance of those instruments on long-term strategic plan.

b. Credit Risk

Credit risk is the risk where one of the parties involved in a financial instrument fails to meet its obligations and cause the other party suffered financial loss. This risk will generally arise from bank deposits and receivables. Management manages the risks associated with savings in the bank by continuously monitoring the credibility and solvency of the bank and considering the bank's participation in the Deposit Insurance Agency (LPS). Management always pays attention to the payment liquidity and adequacy of the deposits. Management also manages the risks of investments with purchase on blue chip stock category, purchase of bonds with minimum rating of A and purchase of mutual fund based on credibility and historical track record of the investment manager.


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The table below shows statement of financial position exposures related to credit risk:

December 31, 2011 2010 2010

Rp '000 Rp '000 Rp '000

At fair value through profit and lossInvestment - FVPL - shares 1,087,050,992 39,788,456 406,061,522 Investment - FVPL - units of mutual fund 6,579,856,606 1,984,303,422 1,683,025,996 Segregated funds net assets unit link - shares 33,648,436 35,568,571 36,071,596Segregated funds net assets unit link - units of mutual fund 5,150,492,421 5,258,149,735 5,929,442,698Segregated funds net assets unit link - bonds - 66,996,930 -Segregated funds net assets sharia - units of mutual fund 41,678,221 28,179,343 40,413,241Segregated funds net assets sharia - shares 7,781,550 - -

Held to maturityInvestment - HTM - bonds 116,836,355 143,895,186 136,022,260 Segregated funds net assets unit link - bonds 36,759,140 33,401,340 34,148,700 Segregated funds net assets sharia - bonds 14,031,889 14,059,130 14,085,022

Available for saleInvestment - AFS - shares 44,697,900 667,336,000 691,698,013 Investment in shares of stock 46,309,306 260,823 260,823

Loans and receivablesCash 33,819,694 17,939,551 34,282,579 Investment - time deposits 6,123,712,709 335,653,096 60,865,000 Investment - mortgage loans 13,371,611 27,950,867 15,009,727 Investment - policy loans 694,363,553 220,288,774 415,276,992 Segregated funds net assets unit link - time deposits 105,592,893 716,300,000 1,282,877,067 Segregated funds net assets unit link - cash in banks 46,676,678 87,962,636 139,653,621 Segregated funds net assets unit link - investment

receivables 2,406,719 2,522,871 2,271,336 Segregated funds net assets unit link - other receivables 150,000 - -Segregated funds net assets sharia - time deposits 8,600,000 7,000,000 10,000,000 Segregated funds net assets sharia - cash in banks 17,143,237 13,654,704 4,598,717 Segregated funds net assets sharia - investment

receivables 396,114 298,586 504,456 Investment income receivables 29,876,846 8,654,082 11,800,868 Receivable from sale of investment - - 731,875 Other receivables 3,963,395 2,235,021 4,383,342 Guarantee deposits 793,433 415,335 407,412

Total financial assets 20,240,009,698 9,712,814,459 10,953,892,863

September 30, (Unaudited)

c. Interest rate Risk Interest rate risk on cash flows is a risk where future cash flows of a financial instrument will fluctuate due to changes of market interest rates. Management always pays attention to the influence of interest rates on investment instruments by referring to the Central Bank's rate and inflation rate.


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Effective Carrying Effective Carrying Effective CarryingInterest Rate Value Interest Rate Value Interest Rate Value

% Rp '000 % Rp '000 % Rp '000

Investments - time depositsRupiah 6.25 - 12.00 6,054,161,000 6.73 - 9.75 292,782,200 7.00 - 10.00 60,865,000 Foreign currencies 1.25 - 2.00 69,551,709 1.75 - 2.25 42,870,896 - -

Investments - bondsRupiah 9.00 - 12.80 341,400,763 9.00 - 12.80 327,195,486 9.00 - 12.80 337,220,380 U.S. Dollar 0.00 - 8.75 128,975,362 0.00 - 8.75 157,638,146 0.00 - 8.75 148,665,298

Investments - mortgage loans 0.00 - 18.00 13,371,611 0.00 - 18.00 27,950,867 0.00 - 18.00 15,009,727 Investments - policy loans

Rupiah 14.00 - 16.00 617,300,470 14.00 - 16.00 200,136,984 14.00 - 16.00 374,352,009 U.S. Dollar 6.00 - 14.00 77,063,083 6.00 - 14.00 20,151,790 6.00 - 14.00 40,924,983

Cash and cash equivalents 1,50 33,896,243 1,50 18,009,901 1,50 34,355,179 Segregated funds net assets of unit link:

Time depositsRupiah 5.2 - 6.25 96,902,238 6.25 - 10.00 716,300,000 7.00 - 10.00 1,251,975,000U.S. Dollar 0.15 8,690,655 - 0.15 - 1.50 30,902,067

BondsRupiah 9.50 - 15.00 13,415,242 9.50 - 15.00 13,291,000 9.50 - 15.00 13,321,685U.S. Dollar 0.00 33,759,140 0.00 30,401,340 0.00 31,148,700

Cash in banks 1,50 46,600,129 1,50 87,892,286 1,50 139,581,021

Total 7,535,087,645 1,934,620,896 2,478,321,049

(Unaudited) (Unaudited) December 31, 2010 September 30, 2011 September 30, 2010

d. Foreign Exchange Rate Risk

Exchange rate risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate due to the changes in foreign currency exchange rates. The Company's exposure and the exchange rate fluctuation mainly derived from investments, cash and cash equivalents, segregated funds net assets of unit link, premium receivables, investment income receivables, liability for future policy benefits, estimated claims liability, claims payable, segregated funds contract liabilities and reinsurance payables. The management manages the risks by always keeping the balance of assets and liabilities denominated in foreign currencies with the matching ratio of assets to liabilities of at least 100% at any time.

The following table shows monetary assets and liabilities:

Equivalent in Equivalent in Equivalent in Equivalent in Equivalent in Equivalent inUS$ Rp '000 US$ Rp '000 US$ Rp '000

Asset

InvestmentsTime deposits 7,883,000 69,551,709 4,804,000 42,870,896 - -Units of mutual fund 68,506,544 604,433,240 57,821,771 516,001,484 52,871,391 475,366,677Shares 5,916,701 52,203,050 - - - -Bonds 14,618,085 128,975,362 17,664,517 157,638,146 16,534,901 148,665,298Policy loans 8,734,340 77,063,083 2,258,157 20,151,790 4,551,772 40,924,983

Cash 330,551 2,916,100 290,507 2,592,488 433,464 3,897,277Segregated funds

net assets of unit link 64,184,031 566,295,706 62,229,000 555,331,604 74,642,715 671,112,647Premiums receivable 51,709 456,229 109,336 975,712 118,375 1,064,314Reinsurance receivables - - - - 888 7,987Investment income receivables 254,365 2,244,260 259,488 2,315,671 108,360 974,266

Total 1,504,138,739 1,297,877,791 1,342,013,449

Liabilities

Liability for future policy benefits 97,998,248 864,638,543 58,180,772 519,205,210 58,851,009 529,129,423Unearned premiums 8,090 71,373 9,063 80,877 10,071 90,551Estimated claims liability 82,087 724,252 98,445 878,527 97,053 872,601Claims payable 2,318,791 20,458,693 1,329,386 11,863,445 303,175 2,725,843Segregated funds contract

liabilities of unit link 57,552,989 507,790,021 55,176,746 492,397,279 68,126,192 612,522,591Reinsurance payables 43,274 381,806 4,244 37,876 10,923 98,206Other liabilities 5,311,637 50,253,311 472,464 6,245,424 4,871,161 43,796,609

Total 1,444,317,999 1,030,708,638 1,189,235,824

Net Assets 59,820,740 267,169,153 152,777,625

2010 20102011September 30, (Unaudited) December 31,


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e. Liquidity Risk

Liquidity risk is risk in which the Company will have difficulties obtaining cash to meet obligations. The management of this risk is done by applying cash management that include projections up to some future period, keeping the maturity profile of financial assets and liabilities as well as continuously monitoring the plan and the realization of cash flows. The table below summarizes the maturity profile of financial assets and liabilities based on contractual undiscounted payments:

<= 1 year 1-2 years 2-3 years 3-4 years 4-5 years > 5 years TotalRp '000 Rp '000 Rp '000 Rp '000 Rp '000 Rp '000 Rp '000

AssetsInvestments

Time deposits 6,123,712,709 - - - - - 6,123,712,709FVPL - Shares 1,087,050,992 - - - - - 1,087,050,992FVPL - Units of mutual fund 6,579,856,606 - - - - - 6,579,856,606AFS - Shares 44,697,900 - - - - - 44,697,900HTM - Bonds - 115,862,973 - 28,457,171 12,909,179 313,146,802 470,376,125Policy loans 13,371,611 - - - - - 13,371,611Mortgage loans 681,322,673 607,638 333,830 262,497 693,372 11,143,543 694,363,553Investment in shares of stock 46,309,306 - - - - - 46,309,306

Cash 33,896,243 - - - - - 33,896,243Segregated funds net assets of unit link

Cash in banks 46,676,678 - - - - - 46,676,678Time deposits 105,592,893 - - - - - 105,592,893Units of mutual fund 5,150,492,421 - - - - - 5,150,492,421Shares 33,648,436 - - - - - 33,648,436Bonds 3,000,000 39,664,952 - 4,509,430 - - 47,174,382Investment receivables 2,406,719 - - - - - 2,406,719Other receivables 150,000 - - - - - 150,000

Segregated funds net assets of shariaCash in banks 17,143,237 - - - - - 17,143,237Time deposits 8,600,000 - - - - - 8,600,000Units of mutual fund 41,678,221 - - - - - 41,678,221Shares 7,781,550 - - - - - 7,781,550Bonds 2,035,737 9,884,422 1,042,141 7,570,370 1,069,589 - 21,602,259Investment receivables 396,114 - - - - - 396,114

Investment income receivables 29,876,846 - - - - - 29,876,846Other receivables 3,963,395 - - - - - 3,963,395Guarantee deposits 793,433 - - - - - 793,433

Total 20,064,453,720 166,019,985 1,375,971 40,799,468 14,672,140 324,290,345 20,611,611,629

LiabilitiesAccrued expenses 7,655,043 - - - - - 7,655,043Other liabilities 197,710,556 - - - - - 197,710,556

Total 205,365,599 - - - - - 205,365,599

Maturity gap assets and liabilities 19,859,088,121 166,019,985 1,375,971 40,799,468 14,672,140 324,290,345 20,406,246,030



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AssetsInvestments

Time deposi ts 335,653,096 - - - - - 335,653,096FVPL - Shares 39,788,456 - - - - - 39,788,456FVPL - Units of mutual fund 1,984,303,422 - - - - - 1,984,303,422AFS - Shares 667,336,000 - - - - - 667,336,000HTM - Bonds 17,714,140 - 108,319,075 - 27,416,960 331,383,457 484,833,632Policy loans 27,950,867 - - - - - 27,950,867Mortgage loans 193,005,611 228,804 1,017,794 593,138 555,827 24,887,600 220,288,774Investment in shares of stock 260,823 - - - - - 260,823


Cash in banks 87,962,636 - - - - - 87,962,636Time deposi ts 716,300,000 - - - - - 716,300,000Units of mutual fund 5,258,149,735 - - - - - 5,258,149,735Shares 35,568,571 - - - - - 35,568,571Bonds 66,996,930 3,000,000 36,271,340 - 4,421,000 - 110,689,270Investment receivables 2,522,871 - - - - - 2,522,871

Segregated funds net assets of shariaCash in banks 13,654,704 - - - - - 13,654,704Time deposi ts 7,000,000 - - - - - 7,000,000Units of mutual fund 28,179,343 - - - - - 28,179,343Bonds - 2,084,680 9,821,180 1,116,830 7,384,150 1,036,440 21,443,280Investment receivables 298,586 - - - - - 298,586

Investment income receivables 8,654,082 - - - - - 8,654,082Other receivables 2,235,021 - - - - - 2,235,021Guarantee deposits 415,335 - - - - - 415,335

Total 9,511,960,130 5,313,484 155,429,389 1,709,968 39,777,937 357,307,497 10,071,498,405

LiabilitiesAccrued expenses 1,656,653 - - - - - 1,656,653Other l iabili ties 189,473,576 - - - - - 189,473,576

Total 191,130,229 - - - - - 191,130,229




AssetsInvestments

Time deposits 60,865,000 - - - - - 60,865,000FVPL - Shares 406,061,522 - - - - - 406,061,522FVPL - Units of mutual fund 1,683,025,996 - - - - - 1,683,025,996AFS - Shares 691,698,013 - - - - - 691,698,013HTM - Bonds 17,987,015 15,000,106 44,919,524 - 28,075,624 379,903,409 485,885,678Policy loans 411,266,622 4,010,370 - - - - 415,276,992Mortgage loans 551,558 239,712 1,005,197 613,357 423,612 12,176,291 15,009,727Investment in shares of stock 260,823 - - - - - 260,823


Cash in banks 139,653,621 - - - - - 139,653,621Time deposits 1,282,877,067 - - - - - 1,282,877,067Units of mutual fund 5,929,442,698 - - - - - 5,929,442,698Shares 36,071,596 - - - - - 36,071,596Bonds 3,000,000 22,728,535 14,298,900 - 4,442,950 - 44,470,385Investment receivables 2,271,336 - - - - - 2,271,336

Segregated funds net assets of shar iaCash in banks 4,598,717 - - - - - 4,598,717Time deposits 10,000,000 - - - - - 10,000,000Units of mutual fund 40,413,241 - - - - - 40,413,241Bonds - 2,080,411 4,724,755 5,109,609 8,603,033 1,073,312 21,591,120Investment receivables 504,456 - - - - - 504,456

Investment income receivables 11,800,868 - - - - - 11,800,868Receivable from sale of investment 731,875 - - - - - 731,875Other receivables 4,383,342 - - - - - 4,383,342Guarantee deposits 407,412 - - - - - 407,412

Total 10,772,227,957 44,059,134 64,948,376 5,722,966 41,545,219 393,153,012 11,321,656,664

LiabilitiesAccrued expenses 3,241,612 - - - - - 3,241,612Other l iabili ties 197,903,975 - - - - - 197,903,975

Total 201,145,587 - - - - - 201,145,587


December 31, 2010


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33. Prospective Accounting Pronouncements

The Indonesian Institute of Accountants has issued the following Revised Financial Accounting Standards (PSAK) and Interpretations (ISAK). These standards will be applicable to financial statements with annual period beginning on or before January 1, 2012 as follows:

PSAK

1. PSAK 10 (Revised 2010), The Effects of Changes in Foreign Exchange Rates 2. PSAK 18 (Revised 2010), Accounting and Reporting by Retirement Benefit Plans 3. PSAK 24 (Revised 2010), Employee Benefits 4. PSAK 33 (Revised 2011), Accounting of Land Stripping Activities and Environmental Management

in General Mining 5. PSAK 34 (Revised 2010), Construction Contracts 6. PSAK 45 (Revised 2011), Financial Reporting for Non-profit Organization 7. PSAK 46 (Revised 2010), Accounting for Income Taxes 8. PSAK 50 (Revised 2010), Financial Instruments: Presentation 9. PSAK 53 (Revised 2010), Share Based Payment 10. PSAK 56 (Revised 2011), Earnings per Share 11. PSAK 60, Financial Instruments: Disclosures 12. PSAK 61, Accounting of Government Grants and Disclosure of Government Assistance 13. PSAK 63, Financial Reporting in Hyperinflationary Economies 14. PSAK 64, Exploration for and Evaluation of Mineral Resources

ISAK

1. ISAK 13 (2010), Hedges of a Net Investment in a Foreign Operation 2. ISAK 15, PSAK 24 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and

Their Interaction 3. ISAK 16, Service Concession Agreement 4. ISAK 18, Government Assistance - No Specific Relation with Operating Activity 5. ISAK 19, Applying the Restatement Approach under PSAK 63: Financial Reporting in

Hyperinflationary Economies 6. ISAK 20, Income Taxes - Changes in the Tax Status of an Entity or its Shareholders 7. ISAK 22, Service Concession Arrangements: Disclosures 8. ISAK 23, Operating Leases-Incentives 9. ISAK 24, Evaluating the Substance of Transactions Involving the Legal Form of a Lease PPSAK 1. PPSAK 8: Withdrawal of IAS 27: Accounting for Cooperatives

The Company is still evaluating the effects of these revised PSAKs, PPSAKs and ISAKs and has not yet determined the related effects on the financial statements.

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PT ASURANSI JIWA SINARMAS MSIG (formerly PT … Asuransi Jiwa Sinarm… · PT ASURANSI JIWA...

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