AM Best Affirms Credit Ratings of PT Asuransi Tokio Marine Indonesia
SINGAPORE--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of 'a-' (Excellent) of PT Asuransi Tokio Marine Indonesia (TMI) (Indonesia). The outlook of these Credit Ratings (ratings) is stable.
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 hours ago
- Yahoo
Cristiano Ronaldo to remain at Al-Nassr following fresh agreement
Cristiano Ronaldo to remain at Al-Nassr following fresh agreement Cristiano Ronaldo is expected to sign a new two-year contract with Saudi Pro League (SPL) club Al-Nassr, according to Foot Mercato. There were rumours about Ronaldo joining Saudi rivals Al-Hilal or Al-Ahli, which intensified after he posted a cryptic message on Twitter. The post raised doubts about whether he would continue with Al-Nassr beyond this season. Advertisement However, Ronaldo is set to extend his stay at Al-Nassr until 2027. This new contract would keep him in Saudi Arabia beyond his 42nd birthday. Ronaldo ends the season as the top scorer but without a trophy The former Real Madrid star had another strong season in front of goal, bagging 35 goals and four assists across all competitions. Ronaldo finished the league season with 25 goals in 30 matches. He won the Saudi Pro League Golden Boot for the second year running. Despite his individual success, Al-Nassr endured a disappointing campaign. The club finished third in the league, falling short in their pursuit of the title. Advertisement They were also eliminated in the semi-finals of the AFC Champions League by Japanese side Kawasaki Frontale and missed out on the Saudi Super Cup and the King's Cup. Despite this, the Portuguese forward's commitment to the project appears strong. His goal return remains impressive, and he continues to deliver at a decent level. If the deal goes through as expected, SPL fans can look forward to watching Ronaldo for another two years. His continued presence in the league will also help maintain global interest in the SPL.
Time Magazine
8 hours ago
- Time Magazine
Trump Explains Reason Behind Doubling Steel, Aluminum Tariffs—But Critics Issue Stark Warnings Over ‘Reckless' Move
President Donald Trump announced on Friday that he plans to double the tariffs on steel and aluminum—increasing the charge from 25% to 50%. The tariff escalation comes at a precarious time, as Trump's 'reciprocal' tariffs are immersed in legal trouble at the court level and many U.S. businesses are struggling to contend with the back-and-forth nature of the levies. Trump's announcement also coincides with the 'blockbuster' agreement between U.S. Steel and Japanese steel company Nippon, a deal which he promised will include no layoffs and the steelmaker will be "controlled by the USA." The steepened tariffs could potentially further escalate tensions between the U.S. and its previous top steel partners, which include Canada, Brazil, Mexico, South Korea, and Vietnam. As the U.S.' number one steel importer, Canada —with whom the U.S. has already escalated tensions due to Trump's other tariffs—stands to feel the pressure of this latest move. Here's what to know about Trump's doubled tariffs and what experts have to say about it. What has Trump said about doubling the steel and aluminum tariffs? Trump announced his decision during a rally at U.S. Steel's Mon Valley Works–Irvin Plant near Pittsburgh in West Mifflin, Penn., surrounded by hardhat-donned steel workers. 'We're going to bring it from 25% percent to 50%—the tariffs on steel into the United States of America—which will even further secure the steel industry in the United States,' Trump told the crowd, offering his reasoning that the increased charges will ultimately help the domestic industry. 'Nobody's going to get around that.' He later posted about his decision on social media, revealing that the tariffs would also be raised for aluminum.'Our steel and aluminum industries are coming back like never before,' Trump wrote on Truth Social. 'This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers.' When are the doubled tariffs due to come into effect? In Trump's announcement post on Truth Social, he said that the doubled tariffs would come into effect on Wednesday, June 4. Although it's worth noting that other tariff threats—such as the proposed 50% charge on the E.U. and the majority of Trump's 'reciprocal' tariffs that he announced on April 2—have been temporarily paused to allow time for negotiations. It remains to be seen if an extension will be granted for this new June 4 date. The back-and-forth on tariff dates and rates has left many businesses in limbo, though Felix Tintelnot, professor of economics at Duke University, says that with steel and aluminum, the Administration has generally followed through on the timings they've announced. The question, he says, is how long the 50% will stand, as he's seen the rates 'flip-flopping all the time.' Tintelnot argues that the resulting uncertainty is causing real harm to U.S. businesses and thus, in turn, impacting workers, despite Trump's claims that the tariffs will bring large amounts of money to the U.S. steel industry. 'We're talking about expansion of capacity of heavy industry that comes with significant upfront investments, and no business leader should take heavy upfront investments if they don't believe that the same policy is there two, three, or four years from now,' Tintelnot says. 'Regardless of whether you're in favor [of] or against these tariffs, you don't want the President to just set tax rates arbitrarily, sort of by Executive Order all the time.' How have lawmakers, industry people, and experts reacted? Though Tintelnot agrees that the escalated tariffs should help the domestic steel industry, he says it will be coinciding with struggles in other U.S. industries as a result of the increase. 'So, this is expected to raise the price of aluminum, which is important in inputs for downstream industries like the automotive industry, as well as construction, so there's sort of a distributional conflict here,' Tintelnot warns. 'Yes, it does help the domestic steel sector, but [it's] hurting these other sectors of the economy, and they are already hard hit by other tariffs.' The USW (Unity and Strength for Workers, most commonly referred to as United Steelworkers)—a trade union of steelworkers across North America— said in a statement that the increase will have a negative impact on Canada's industries and jobs. 'This isn't trade policy—it's a direct attack on Canadian industries and workers,' said Marty Warren, United Steelworkers national director for Canada. 'Thousands of Canadian jobs are on the line and communities that rely on steel and aluminum are being put at risk. Canada needs to respond immediately and decisively to defend workers.' Meanwhile, Bea Bruske, president of the Canadian Labour Congress, said that the plan to double tariffs is a 'direct attack on Canadian workers and a reckless move' and warned that it "could shut Canadian steel and aluminum out of the U.S. market entirely and put thousands of good union jobs at risk." Speaking about the tariffs overall, Canada's Prime Minister Mark Carney said on Friday that he intends to jumpstart and fast track national building projects throughout the country to respond to Trump's trade war, 'ensuring that the Canadian government becomes a catalyst for, not an impediment to, nation-building projects that will supercharge growth in communities, both large and small.' Other international lawmakers, meanwhile, have voiced their disapproval of Trump's tariffs escalations.
Yahoo
11 hours ago
- Yahoo
Insurance costs edge higher for Florida homeowners and condo owners
The upward rise in costs for homeowner insurance in Florida resumed during the first quarter of 2025, with average premium costs edging higher after dipping slightly in late 2024, new data released by the Florida Office of Insurance Regulation shows. The average premium paid by owners of single-family homes in Florida increased by 0.3% — climbing from $3,646 to $3,658 — between the fourth quarter of 2024 and the first quarter of 2025, according to a South Florida Sun Sentinel comparison of figures released in the office's quarterly Residential Market Share Report. Condo unit owners saw their costs increase by 0.8%, from $1,714 to $1,729 during the period, the data shows. Homeowner insurance costs fell by 0.7% in fourth quarter of 2024 Home insurance costs in Florida spiked in third quarter. Are more increases on the way? Condo association insurance costs doubled since 2022, new data shows Your insurance costs won't climb so high this year. All bets are off if we get a lot of hurricanes. Since the enactment of reforms in 2022 aimed at sharply reducing litigation costs for insurers, average premiums have increased 30.7% for homeowners and 28.8% for condo unit owners. The first-quarter hikes followed cost decreases of less than 1% for homeowner policies and 1.7% for condo unit policies during the fourth quarter of 2024. That was the only quarter with cost decreases since the release of the reports began in 2022. The office released the latest data without comment and Insurance Commissioner Michael Yaworsky did not respond to an email from the Sun Sentinel. An office spokeswoman said she did not believe that Yaworsky would be able to address the increases prior to this news article's publication. Mark Friedlander, senior director of media relations for the industry-funded Insurance Information Institute, attributed the increase to 'higher replacement costs due to inflationary impacts of construction materials and labor.' He also pointed out that the 'slight increase is far below most other hurricane-prone coastal states, which are experiencing double-digit premium increases.' The data showing the cost increases for Florida consumers followed the release of an analysis by insurance ratings firm AM Best noting improvements in the state's insurance market. In addition to achieving, in 2024, the market's first collective underwriting profit in eight years, the AM Best report cited the emergence of 13 new private-market insurers, stabilizing premiums and reinsurance costs, and a sharp reduction in policies held by state-run Citizens Property Insurance Corp., the state's so-called insurer of last resort. The improvements were made possible, AM Best said, by tort reforms enacted in 2022 and 2023 by the Florida Legislature and governor to reduce runaway litigation costs that were driving losses within the industry. During debate in the Legislature over the reforms, insurance insiders predicted that costs for consumers, then rising sharply, would stabilize or even be reduced after litigation that was underway had a few years to work its way through the courts. Prior to the start of the 2025 legislative session, Yaworsky joined Gov. Ron DeSantis at a news conference touting the number of insurers that submitted requests for lower or unchanged rates. Critics, however, said the reforms have gone too far, adding to insurer profits while leaving policyholders with less leverage over claims disputes. A bill was backed by plaintiffs attorneys that would have reinstated requirements for insurers that lose claims disputes to pay plaintiffs' legal fees. It passed the House but was not advanced in the Senate. Insurance premiums increased for 41 of 61 carriers with 1,000 or more policies, according to the analysis. The Cincinnati Insurance Co. charged the largest premium increase — 45.7% — among the group of Florida-registered insurers. While its policy count decreased from 1,631 to 1,009, its average premium increased from $11,014 to $16,044. Average risk covered by the Fairfield, Ohio-based company is $2.8 million. Truck Insurance Exchange's 2,390 policyholders saw the second-largest increase, 16.1%, as premiums swelled from $2,059 to $2,390. Premium costs for 20 companies increased by less than 2% and customers of 17 companies saw their premiums decrease, on average, between 0.2% and 9.3% Companies with lower premiums included Florida-based Edison, Florida Peninsula, Security First, Monarch National, American Integrity, ASI Preferred, Safe Harbor, Orange and Safeport. Costs for Citizens customers declined by 1.9%, from $3,348 to $3,283. The Sun Sentinel's calculations excluded two companies from the fourth and first quarters and a third company from the first quarter. Fourth-quarter data reported by two of the companies contained obvious glitches that would have skewed results. The third company did not report its data in the fourth quarter but resumed reporting in the first quarter. Including that company's data in the analysis would have made the first-quarter increases appear artificially large. Condo associations saw relief for the third straight quarter as premiums fell by 5.3% following decreases of 2.5% and 3.0%. Condo association premiums had increased by an average 103% between June 2022 and June 2024 amid concerns about tightening inspection and maintenance requirements. Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071 or by email at rhurtibise@ 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
