Amid the Pandemic, Tugu Insurance Maintains A- (Excellent) Global Financial Strength Rating from A.M. Best for 6 Years in a Row
Jakarta, December 9, 2021 – PT Asuransi Tugu Pratama Indonesia Tbk (Tugu Insurance) recorded an achievement at the end of 2021. Tugu Insurance successfully maintained the global level of Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Rating of “a-” (Excellent) from A.M. Best for 6 consecutive years as a reflection of a very strong financial position (stable outlook), supported by sound business operations and adequate risk management.
A.M. Best is the oldest insurance company rating agency in the world (founded in 1899) and based in New York, United States. Every year, A.M. Best provides assessments to more than 16,000 insurance companies worldwide. A.M. Best measures the financial health of insurance companies based on the company's ability to pay claims, debts, and other financial obligations in time.
The achievements held by Tugu Insurance are very meaningful in the midst of the pandemic conditions that have occurred since 2020 until now and in the midst of great pressure from declining financial performance in all industries, especially insurance in Indonesia and abroad. This achievement is inseparable from the company's efforts to continuously strengthen its risk management, along with the company's growth and operational complexity. Currently, Tugu Insurance is still the only national general insurance company that has an A- (Excellent) international rating from A.M. Best, beside the Risk-Based Capital (RBC) level of 451.73% which is far above the minimum limit set by the Financial Services Authority (OJK) which is 120%.
President Director of Tugu Insurance, Indra Baruna, stated that his party will always ensure that the company team can provide a prudent risk analysis of the various risks that will be borne. "In addition to the precautionary principle, the portfolio balancing that we carry out has a positive impact on the growth of underwriting results. We also continuously implement risk management in the management of investment assets as part of the company's risk management. And finally giving assurance and the feeling of safety to all consumers of Tugu Insurance in fulfilling obligations," said Indra in an official statement, Thursday (2/12).
Citing the explanation of A.M. Best, the assessment of the company's balance sheet strength, supported by risk-adjusted capitalization so that it remains at the strongest level and is measured based on the Best's Capital Adequacy Ratio (BCAR).
"In addition to portfolio balancing, digital transformation to change business processes in order to improve user experience and the company's operational efficiency will continue to be the main focus of Tugu Insurance in the future," Indra concluded.**