AM Best Affirms Credit Ratings of PT Asuransi Tokio Marine Indonesia
The ratings reflect TMI's balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. In addition, the ratings factor in rating enhancement from Tokio Marine & Nichido Fire Insurance Co., Ltd., which is the main insurance operating entity of Tokio Marine Holdings, Inc. (TMH).
TMI's risk-adjusted capitalisation, as measured by Best's Capital Adequacy Ratio (BCAR), was at the strongest level at year-end 2024, and is expected to remain at this level over the medium term. The company's capital adequacy is sensitive to its exposure to domestic (re)insurance counterparties of lower credit quality. Risk-adjusted capitalisation was impacted negatively in 2023 due to large reinsurance claims, but showed a recovery in 2024 supported by a timely reinsurance claims settlement. Notwithstanding the recent volatility in capital adequacy, the company has demonstrated a track record of strong internal capital generation, with average annual shareholders' equity growth of 9.4% over the past five years (2020-2024). In addition, TMI has a conservative investment portfolio composed of mainly government bonds, cash and deposits.
AM Best assesses TMI's operating performance as strong, evidenced by a five-year average combined ratio of 84% and return-on-equity ratio of 18% (2020-2024). The company's underwriting performance remained robust in 2024 with a combined ratio of 82%, supported by favourable loss experience on its marine cargo, motor and fire class of business. In addition, TMI's investment returns from interest income is also a stable contributor to overall earnings.
AM Best assesses TMI's business profile as limited. TMI is a small-sized, non-life insurer in Indonesia, with a domestic market share of 2%, as measured by 2024 gross premium written. AM Best views the company's portfolio to be diversified moderately by line of business with key lines including fire, marine and motor insurance, although with a geographic concentration in Indonesia. TMI benefits from preferential access to Japanese interest abroad (JIA) related risks in Indonesia given its affiliation and common branding with TMH. The company also has shown significant growth in non-JIA-related risks over time, particularly for marine cargo.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
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Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts David Barroso Associate Financial Analyst +52 55 1102 2720, ext. 135 Alfonso Novelo Senior Director, Analytics +52 55 1102 2720, ext. 107 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
