KUALA LUMPUR, Oct 14 -- AM Best has affirmed the Financial Strength Rating of A- (excellent) and the Long-Term Issuer Credit Rating of ‘a-’ of PT Asuransi Tugu Pratama Indonesia, Tbk (TUGU), Indonesia.
The negative outlook of these credit ratings reflects TUGU’s balance sheet strength, which AM Best categorised as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
The ratings also factor in a neutral impact from the company’s ultimate majority ownership by Indonesia’s government, according to a statement.
The negative outlooks reflect AM Best’s ongoing concern over the company’s risk management and its ability to manage enterprise-wide risks and operations effectively.
TUGU’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which remains at the strongest level, as measured by Best’s Capital Adequacy Ratio. Internal capital generation over recent years, along with a capital raising in 2018, has strengthened its capital base and continued to support business expansion.
AM Best views TUGU’s operating performance as strong. The company reported five-year average combined and operating ratios of 82 per cent and 64 per cent, respectively (2014 to 2018).
A significant contributor to the company’s underwriting profits has been its corporate business from PT Pertamina (Persero), TUGU’s immediate parent and Indonesia’s national integrated energy company.
AM Best is a global rating agency and information provider with an exclusive focus on the insurance industry. More information at www.ambest.com.
-- BERNAMA
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