Indonesia's TUGU Credit Ratings Affirmed, Outlook Revised To Stable - AM Best

KUALA LUMPUR, Dec 10 (Bernama) -- AM Best has affirmed PT Asuransi Tugu Pratama Indonesia Tbk (TUGU)’s financial strength rating (FSR) of A- (Excellent) and the long-term issuer credit rating (Long-Term ICR) of “a-” (Excellent), while revising the outlooks from negative to stable.

Concurrently, the global credit rating agency has affirmed TUGU’s Indonesia National Scale Rating (NSR) of aaa.ID (Exceptional) with a stable outlook.

The credit ratings (ratings) reflect TUGU’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

According to AM Best in a statement, the ratings also factor in the neutral impact from TUGU’s ultimate majority parent, PT Pertamina (Persero) (Pertamina), a state-owned energy company in Indonesia.

The revision of outlooks to stable reflects improved operating results, with TUGU demonstrating robust earnings in recent periods, supported in part by profitable business from the Pertamina group.

Underwriting performance improved in 2024 across both primary and reinsurance operations, aided by portfolio remediation measures, while positive operating earnings continued in the first nine months of 2025.

TUGU’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, which is expected to remain at the strongest level over the medium term. 

The credit rating agency views TUGU’s investment portfolio to be of moderate risk and generally diversified, with the majority of investments allocated to bonds and time deposits and the remainder held in investment properties and equity investments.

AM Best assesses TUGU’s business profile as neutral. The company is a large insurance organisation in Indonesia, ranking third by market share in 2024 in the domestic general insurance market, and has a strong market position in commercial and industrial risks, including the energy, aviation, fire and marine hull business segments.

-- BERNAMA