Indonesia’s TUGU outlooks revised to stable from negative - AM Best

KUALA LUMPUR, Nov 2 -- AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of ‘a-’ of PT Asuransi Tugu Pratama Indonesia Tbk (TUGU) Indonesia.

These Credit Ratings (ratings) reflect TUGU’s balance sheet strength, which AM Best categorised as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The revision of the outlooks to stable reflects the company’s improvements in ERM on a group-wide basis in terms of risk governance, underwriting, reserving and investment activities in recent years.

According to a statement, the effective measures are evidenced by TUGU’s improved profitability, better strategic alignment of various business components and more prudent approach to business expansion.

The global credit rating agency, AM Best expects the company to continue to strengthen its risk management capabilities as TUGU’s operations and risks grow in size and complexity.

TUGU’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, which remains at the strongest level, as measured by Best’s Capital Adequacy Ratio.

Low underwriting leverage and good internal capital generation over recent years have strengthened the company’s capital adequacy and continued to support its business expansion.

More details at www.ambest.com.

-- BERNAMA