Tugu Insurance Receives 7th International A Rating From AM Best

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By the end of 2022, Tugu Insurance (TBK) will receive “Financial Strength Rating A- (Excellent)” and “Long-Term Issuer We aim to maintain a global rating of Credit Rating A -” Success. Excellent)’ American Insurance Rating Agency, AM Best. Receiving an A- (Excellent) rating in 2022 means that Pitch Insurance has received an A- (Excellent) rating from AM Best for 7 consecutive years (2016-2022), and is still the only national non-life insurance company to receive this prospect. It received an international rating of A- (Excellent) from AM Best.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States (founded in 1899), AM Best operates in more than 100 countries with offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. Each year, AM Best provides ratings to more than 16,000 insurance companies worldwide.

AM Best said in a statement that the A rating for Tugu Insurance reflects the strengths of Tugu Insurance’s extremely sound balance sheet, strong operating performance, neutral business profile and sound corporate risk management. The rating also takes into account the neutral impact of the company’s primary parent, PT Pertamina (Persero).

Tugu Insurance’s balance sheet strength is supported by risk-adjusted capitalization measured at its strongest level, the Best’s Capital Adequacy Ratio (BCAR). Capital adequacy is supported by low net underwriting leverage and continued growth of internal capital. In addition, Ambest’s pitching insurance solvency is evaluated to be much higher than the minimum standard. A sound balance sheet is backed by a moderate level of investment risk. Tugu Insurance also makes heavy use of reinsurance to support large-scale commercial risk insurers, including its aviation and energy businesses, but most of these reinsurance assets are AM Best rated for good credit quality.

Tugu Insurance President Tatang Nurhidayat highly praised the AM Best 2022 rating review results. Tatang said in a written statement on Thursday (29 December 2022).

Helms Insurance will innovate insurance services by developing products that meet customer needs based on digital technology. “Continuing to innovate and prioritize prudence principles when applying risk management is key to enabling Tugu Insurance to respond to the diverse opportunities and challenges that exist in the insurance industry,” said Tatang.

Tugu Pratma Insurance’s Net Income Increased By 21% Through April 2018

PT Asuransi Tugu Pratama Indonesia TBK (TUGU) reported net profit for April 2018 to USD 9.4 million, up 21% year-on-year.

The company aims to achieve overall business growth of 15% or more. “The increase in earnings in April 2018 was driven by the performance of the parent company, which grew significantly compared to the previous year in both acquisition activity and investment performance.” TUGU Muhammad, Director of Finance and Corporate Services, Indonesia Stock Exchange Syed Said (IDX) Building Monday, (28 May 2018).

For the four months of 2018, total premium income was USD 76.1 million and underwriting results were USD 14.8 million.

Premium growth was driven by property insurance lines in the Oil & Gas, Energy and Aviation sectors. “This year we are still prioritizing our strategy to improve underwriting results”, he said.

Meanwhile, the company’s chief executive officer, Indra Baruna, said the strategy was implemented to maintain a prudent level of risk assessment. As such, many businesses previously handled by the company were not renewed.

He also said the decision was based on increased risks and delays in several of the company’s projects.

“This strategy did not generate significant business growth for the company. On the other hand, it did significantly increase the company’s business because of the low risk level”, he said.

PT Asuransi Tugu Pratama Indonesia TBK implements a cross-subsidy policy between companies with high potential and those with low potential.

“We will increase the retention rate of potential businesses. On the other hand, we will be more careful with less likely businesses,” he said.

Prior to this, PT Asuransi Tugu Pratama Indonesia TBK will list its first shares on the Indonesia Stock Exchange (IDX) on Monday, May 28, 2018. The Company is an issuer or company that listed its 16th stock on IDX in 2018.

PT Asuransi Tugu Pratama Indonesia TBK, a subsidiary of Pertamina, issued approximately 177.77 million shares, citing data from the Indonesia Central Securities Depository (KSEI). The number of issued shares decreased. The last 282 million shares were issued to the public.

The company sets an initial share price of IDR 3,850 per share. The initial public offering price was set at  IDR 1 million and IDR 3,850 TO IDR 5,000 won share as the lower limit. Hence, the company is about raised IDR 684.44 billion in an initial public offering (IPO).

The IPO proceeds were used to strengthen the company’s capital for business development, starting, among other things, with infrastructure development, information technology development and other operations.

The remainder is for rebranding and promotion of the company’s products. To issue shares to the public, the company has appointed PT Danareksha Securitas and PT Mandiri Securitas as underwriters for the issue of the securities.

The company ran its IPO period on May 18, 21 and 22, 2018. 5/24/2018 share allocation, electronic delivery and 5/25/2018 order withdrawal. PT Asuransi Tugu Pratama TBK also allocates shares to workers or employee share allocations. 1st out of 30 million shares.

The exercise price for allocating shares to workers is the same as the initial offer price. The company also implements executive and employee stock option planning programs. Option rights distributed to participants in the MESO program may be used to purchase new shares to be issued in the portfolio in an amount not to exceed 5%.

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