| Five years of recovery after Indonesian multi dimensional crisis majorly at financial and political crisis in 1998, which have caused highest inflation rate ever after Soharto’s era ruled this country, high unemployment rate which was started from financial sector mainly in banking institutions, stock market and money market, which also affected insurance business. The slight growth of Indonesian economic are also caused the growth in insurance business as a result of increasing awareness of the citizen that how importance of insurance protection are for. A lot of regulations has been issued by government since 1992 and this not reduce the numbers Insurance company in Indonesia, the numbers is exceeding the considered-ideal number compare to less insurance minded due to less of purchasing power and also the effect of this crisis. This condition leads to a very tight competition to get a share in the narrow market. Due to the tight competition, somehow there is an indication of ‘fare war’ among insurance companies. With a lot of limitations, this theses is try to compare their financial performance of the three biggest listed insurance emiten’s companies at Bursa Efek Indonesia using a DuPont Formula and their stock price impact during five years of observation. The figures of financial ratios are then analyzed, both cross sectional and in time series way using DuPont Formula Analysis to discover the strength and weakness of the three objects of observation, compares one to the others. DuPont Formula analysis shows that PT Asuransi Ramayana Tbk is showing the best and quite stable even slightly decrease on their performance, and then PT Asuransi Dayin Mitra Tbk and the last is PT Lippo General Insurance Tbk. This writing is expected to give us a rough picture on financial performance of the big three assets in BEI of general insurance companies in the middle of fare war. At the end, it is expected to give recommendations to PT Lippo General Insurance Tbk to do the efforts to reduce the claim rates, such as to improve their prudent underwriting process and also to reduce their high risk portfolio investment to avoid reoccurring 2003 crash and maintain their stability performance. In addition is, to all investors it is recommended to keep on their investment direct in insurance industry or in portfolio because it is proven that even in a fare war situation, all of the objects of observation are able to show a considerable good in their financial performance. |