Tokio Marine Indonesia will likely hold strong capitalisation in the medium term

After a decline in 2023 due to large claims, capital levels rebounded in 2024.

AM Best sees PT Asuransi Tokio Marine Indonesia (TMI) to maintain a stable outlook, due to its strong capitalisation and solid operating performance over the medium term.

TMI’s risk-adjusted capitalisation, measured by Best’s Capital Adequacy Ratio, was at the strongest level at end-2024 and is expected to remain stable despite some exposure to lower-rated domestic reinsurers. 

After a decline in 2023 due to large claims, capital levels rebounded in 2024 following timely reinsurance settlements. 

Average annual shareholders’ equity growth reached 9.4% from 2020 to 2024, supported by consistent internal capital generation and a conservative investment mix.

The company posted a five-year average combined ratio of 84% and a return on equity of 18%. 

In 2024, underwriting performance improved with a combined ratio of 82%, driven by lower claims in marine cargo, motor, and fire segments. 

Investment income from interest earnings continues to support overall results.

TMI commands a 2% share of Indonesia’s non-life insurance market. Whilst its business remains concentrated domestically, the portfolio is moderately diversified and benefits from access to Japanese interest abroad (JIA) risks through its Tokio Marine affiliation. 

Growth in non-JIA segments, particularly marine cargo, has also contributed to portfolio expansion.