Asuransi Allianz Life’s profitability to remain supported by parent: Fitch

The insurer’s profitability improved significantly in 2024.

PT Asuransi Allianz Life Indonesia’s (Allianz Life) will maintain its financial stability and continue receiving strong support from its parent company, Allianz SE, Fitch Ratings assessed.

Allianz Life's profitability improved significantly in 2024, with return on equity rising to 15% from 6% in 2023, despite medical inflation. 

This was driven by a 9% increase in premium growth, up from 7% the previous year, along with cost reductions supported by digitalisation initiatives. 

Fitch expects that continued enhancements in risk selection, pricing strategies, and expense management will help sustain profitability.

The company's risk-based capital (RBC) ratio declined to 260% at the end of 2024 from 290% in 2023 due to dividend payments and higher estimated technical reserves, particularly from its traditional business. 

However, its capitalisation remains supported by retained earnings and overall profitability.