Tugu Reasuransi Indonesia to remain ‘stable’: Fitch Ratings

Tugure maintains a resilient capital position, exceeding the 120% regulatory requirement.

Tugure's National Insurer Financial Strength is described to have a stable outlook, reflecting satisfactory regulatory capital amid challenges from property and long-term credit insurance, Fitch Ratings Indonesia said.

The assessment indicates a 'moderate' company profile and limited investment risk.

Tugure maintains a resilient capital position, exceeding the 120% regulatory requirement, though it declined to 209% by the end of September 2023. 

The loss ratio rose to 71% in nine months to September (9M23), driven by higher credit insurance claims and property losses. Fitch expects continued volatility due to exposure in these areas.

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Premium growth slowed to 3% year-on-year (YoY) in 9M23, reflecting a strategic shift toward improving underwriting results. 

Fitch notes a 'moderate' company profile, citing a substantive franchise, diversified business lines, and 12% market share in the Indonesian reinsurance market in 2022.

The company's governance assessment is impacted by the lack of independent members on the board of commissioners.