Fitch expects Marein to sustain prudent investment practices

It held a 14% market share of Indonesia’s total reinsurance premiums end-2024.

PT Maskapai Reasuransi Indonesia Tbk's (Marein) company profile remains moderate, with a strong domestic franchise but limited operating scale compared to global reinsurers, Fitch Ratings said.

It held a 14% market share of Indonesia’s total reinsurance premiums at the end of 2024.

The shift in premium composition, with non-life reinsurance surpassing life for the first time, signals a strategic expansion. 

Fitch expects this trend to continue, driven by pricing adjustments and diversification efforts.  

Underwriting performance remains stable, with a 97% non-life combined ratio in 2024, aligning with its three-year average. 

Return on equity declined to 3% from 4% in 2023, reflecting modest profitability. Whilst Marein's credit insurance exposure has grown, it remains manageable, with credit life insurance now representing 18% of its life reinsurance portfolio.  

Capitalisation remains adequate, though somewhat constrained by exposure to catastrophe risks. 

The risk-based capital ratio fell to 233% in 2024 from 248% the previous year due to premium growth. F
itch continues to assess Marein’s capitalisation as good but notes that its absolute capital size remains small compared to larger reinsurers in the Asia-Pacific region.  

Marein’s investment strategy remains conservative, with over 90% of assets in cash, equivalents, and fixed-income instruments. 

Fitch expects the company to maintain a prudent approach, limiting exposure to equity risks whilst ensuring liquidity.