This Pertamina subsidiary records profit spike up to 145.7 percent
Jakarta - In the midst of challenging economic conditions, PT Asuransi Tugu Pratama Indonesia Tbk (Tugu Insurance) managed to record improved performance both financially and operationally in fiscal year 2019 (audited).
Consolidated current year profit was recorded at Rp 505.7 billion, up 145.7 percent from Rp 205.9 billion from 2018. While the current year's profit attributable to the owners of the parent entity was Rp 458.7 billion, or an increase of 84.1 percent from the previous year.
President Director of Tugu Insurance, Indra Baruna explained, Tugu Insurance's good performance in 2019 cannot be separated from the Company's efforts to always manage risk with the principle of prudence both from underwriting aspects and in investment management.
Until the December 2019 period, the achievement of a consolidated Gross Premium of Rp 6.4 trillion, increased by 26.5 percent from the same period the previous year, which was Rp 5.1 trillion.
"The increase in premiums was contributed mainly from aviation products, fire, various and engineering to motor vehicles," he said in a written statement in Jakarta, Tuesday (06/30/2020).
Consolidated Underwriting Performance Results rose from Rp 720.7 billion to Rp 922.2 billion, up 28.0 percent. In the holding company, the performance of Underwriting Results also increased where in the same period the previous year it was recorded at Rp. 552.2 billion, increasing to Rp. 656.8 billion, up 18.9 percent.
"To improve the Underwriting Results, we have mapped out accounts that have good Underwriting Results to maintain. We also maximize the retention capacity for these good risks, "Indra said.
Specifically for motor vehicle products, the parent contributed significantly to the growth compared to the previous year. Premiums from motor vehicle products rose 125.5 percent to Rp 204.2 billion in 2019.
While its underwriting results rose 85.4 percent to Rp 45.8 billion in 2019, according to Indra, this increase is in line with the implementation of the Company's strategy in developing the retail sector, through superior products of two-wheeled motor vehicles namely t-ride and four-wheeled motorized vehicles ie t drive .
The brilliant performance of the SOE subsidiary PT Pertamina (Persero), which has the TUGU share code, is also reflected in the consolidated investment return. Recorded in the period December 31, 2019, the consolidated investment return increased by 85.3 percent from the same period the previous year.
This result was contributed by an increase in funds under management and interest rates on investment deposits, the benefits of increasing the value of securities, and an increase in the composition of the investment portfolio of financial instruments denominated in Rupiah against the US Dollar.
Recorded at the end of the 2019 consolidated financial year, Tugu Insurance had total assets of Rp 20.7 trillion, an increase of 18.9 percent over the same period last year of Rp 17.4 trillion.
While the company's equity increased 11.5 percent from Rp 7.4 trillion to Rp 8.3 trillion, accompanied by a Risk Based Capital (RBC) level of 434 percent which is far above the minimum limit of the Financial Services Authority (OJK) of 120 percent .