The figure was similar to last year’s investment allocation of $100 million, according to a previous report by Kontan.The investment firm, backed by former Jakarta deputy governor and 2019 vice presidential contender Sandiaga Uno, currently has 15 companies in its portfolio.They including publicly listed companies like coal miner PT Adaro Energy, telecommunication tower firm PT Tower Bersama Infrastructure and automotive firm PT Mitra Pinashtika Mustika (MPM), stocks of which also took a severe hit in the pandemic.Since the beginning of this year, Adaro lost 33.76 percent of its value as of Thursday, while Tower Bersama and MPM share prices declined by 4.88 percent and 24.06 percent, respectively.Saratoga’s portfolio also includes several privately-owned companies like hospital firm PT Famon Awal Bros Sedaya and pharmaceutical firm PT Deltomed Laboratories.The firm’s finance director, Lany D. Wong, stated that the company remained confident on its investees’ stock performance this year, as some of those share prices had regained strength amid the gradual market recovery in April and May.“We are also confident about our investees’ financial performance, as they have good underlying,” said Lany.Meanwhile, Saratoga received approval from its shareholders to disburse Rp 149.2 billion in dividends this year, equal to Rp 55 per share, from its 2019 profit, she continued.The company pocketed Rp 7.37 trillion in net profit in 2019 as it booked Rp 6.23 trillion in net gains on investments. It also booked Rp 2.84 billion on dividends, interest and investment income last year. Saratoga Investama recorded investment losses at Rp 5.9 trillion (US$418.8 million) in this year’s first quarter, a turnaround from Rp 1.39 trillion in profit it booked in the same period last year, as mark-to-market share prices plunged. The Jakarta Composite Index (JCI), the main gauge of Indonesian share prices, has dropped more than 21 percent since the beginning of the year, fuelled by investors’ fear over the impact of the COVID-19 pandemic on the economy.The company’s natural resources stocks portfolio recorded the steepest fall in the first quarter this year with Rp 3 trillion in losses against Rp 509.8 billion in the same period in 2019. In general, it focuses its investment on infrastructure, natural resources and consumer sectors.The company would continue investing in the three sectors, while it expected to score the new investment deals in the next six to 12 months, as it was currently conducting due diligence, Devin said.“We are allocating around $50 million to $100 million for this year’s investments,” said Devin. Publicly listed investment firm PT Saratoga Investama Sedaya plans to expand its investment portfolio after losses sustained in the stock market crash induced by the COVID-19 pandemic.The company’s investment director, Devin Wirawan, said on Wednesday that Saratoga had been assessing several companies and was determining the timing to purchase the stocks.“As an active investment company, we will actively buy new stocks when share prices fall as many of them become more affordable for us,” he told the press during a virtual press briefing, adding that the company would also remain cautious in expanding its portfolio. Topics :
The €215bn Dutch asset manager PGGM is to invest $1bn (€880m) in a new reinsurer to be established in cooperation with Bermuda-based RenaissanceRe.The joint venture, named VermeerRe and also based in Bermuda, will reinsure US properties against natural disasters such as flooding, storms, tornadoes and earthquakes.In a joint statement, PGGM and RenaissanceRe said the Dutch firm would be the sole investor, taking an initial stake of €528m. This will be extended with an additional €352m “to pursue growth opportunities” next year.PGGM is the asset manager for the €206bn Dutch healthcare scheme PFZW. According to Eveline Takken-Somers, senior director of credit and insurance-linked investments at PGGM, the investment would increase PFZW’s current 2% allocation to insurance-linked securities to almost in line with its strategic allocation target of 2.5%.She added that the insurance investment contributed to the desired diversification within PFZW’s entire investment portfolio, and would also have an attractive risk-return profile, “as a financial crisis is no natural disaster”. Flooding in New Orleans after Hurricane Katrina hit in 2005. VermeerRe will provide reinsurance to US properties for natural disasters.In a position paper, PGGM said that the risk exposure of the investment could be assessed in detail because of the “short contracts, sophisticated models and abundant data available”.Aditya Dutt, president of Renaissance Underwriting Managers, said the deal “continues our 20-year track record of creating and managing joint ventures that match well-underwritten portfolios of risk to diverse sources of capital”.PGGM and RenaissanceRe said that VermeerRe had received an A-rating for financial strength from US ratings agency AM Best, and had obtained approval in principle to be licensed and regulated by the Bermuda Monetary Authority as a Class 3B reinsurer.VermeerRe will be managed by Renaissance Underwriting Managers. RenaissanceRe – founded in 1993 – also has offices in the US, the UK, Ireland, Switzerland and Singapore.PGGM’s insurance track recordPFZW started investing in insurance in 2006. According to PGGM’s Takken-Somers, the holdings generated an annual return of 7% on average since then, even delivering a positive result in 2008.Takken-Somers highlighted that the portfolio’s purpose was also to accrue financial buffers for unpredictable events, and explained that PGGM’s risk exposure was comparable with that of its catastrophe bonds allocation.She said PGGM has focused on building strategic partnerships with top-tier reinsurance companies to improve access to and selection of risk since 2014.“We seek efficient implementation of our investments as we believe this leads to superior returns,” she added.Earlier this year, PGGM invested €352m in LeoRe, in a private transaction with reinsurer MunichRe. LeoRe insures the financial impact of natural disasters in America, Europe, Japan, Australia and New Zealand.According to Maurice Wilbrink, spokesman for PGGM, the structure of LeoRe was different from VermeerRe as it involved a catastrophe bond issued in a partnership with MunichRe.