A.M. Best Affirms Credit Ratings of PT Asuransi Tokio Marine Indonesia
The ratings reflect TMI’s balance sheet strength, which
TMI is a joint venture between
TMI’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is supported by the company’s low net underwriting leverage. The company’s investment portfolio is conservative, with most investments placed in cash and government bonds.
In terms of performance, TMI has produced favorable underwriting results, especially within its Japanese-related risks. Investment income, mostly from cash deposits and government bonds, also has supported the company’s results.
An offsetting rating factor is an expected upward trend in the company’s expense ratio, partly due to company’s efforts to expand its non-Japanese business, which typically incurs higher commission expenses. In addition, due to Indonesia’s regulations, a portion of TMI’s reinsurance coverage is provided by domestic counterparties, which are generally of lower credit quality based on international standards.
The company is well-positioned at its current rating level. Negative rating actions may arise from material deterioration in operating performance or risk-adjusted capitalization.
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 A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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