(Repeat for additional subscribers)
Jan 16 (The following statement was released by the rating agency)
Fitch Ratings has affirmed the ratings National Insurer Financial Strength (IFS) PT Asuransi
Indonesia MAIPARK (MAIPARK) at 'BBB + (idn)'. Outlook is Stable.
National IFS rating 'BBB' indicates sufficient capacity to meet obligations to policyholders
relative to all other obligations or other issuers in Indonesia, regardless of industry and type
of obligations. However, changes in circumstances or economic conditions may be more affect the
capacity to pay policyholder obligations than with financial commitments denoted by rank
LEVEL FACTORS MOVER
The rating reflects the operational profitability MAIPARK healthy, prudent investment
management and strong risk-based capitalization. case This also takes into account the company's
business concentration risk reinsurance earthquake in the Indonesian market is prone to natural
MAIPARK total gross premium (including pending policy) grew by 16.99% to IDR105, 2BN at the
end of September 2013 of IDR89, 9BN in late September 2012. This is in line with the growth in
the Indonesian insurance market in general. Effective January 2014, the regulator will require
all general insurance companies and reinsurance in Indonesia to share their earthquake risk to
MAIPARK 15% of the total sum insured (Total Sum Insured / TSI) with Maximum $ 3, 5 million on
one of the risks for all Indonesian locations. case This differs from the current mandatory
division is between 5% and 25% of the TSI with a maximum of $ 2, 5 million on one of the risks.
Following these changes, MAIPARK risk exposure is likely to increase, and company's
management has indicated that it will restructure retrocession protection Excess of Loss (XOL)
for 2014 based on the results catastrophe modeling is updated.
MAIPARK investment portfolio remains highly liquid and conservative with cash and deposits
accounted for more than 90% of invested assets at the end September 2013.
Stable Outlook reflects Fitch's expectation that it will continue MAIPARK maintain a capital
buffer sufficient to support business growth sustainable and protect themselves from potential
shocks. ratio risk-based capitalization (RBC) MAIPARK reaches 1080% at the end of September
2013, much higher than the regulatory minimum of 120%.
The main drivers for the rating upgrade include:
- the company's ability to maintain operating profitability, with pre-tax return on assets
above 20% consistently (end of September 2013: 10.7%), and
- increased risk management capabilities, such as reserving techniques and modeling of
The main trigger downgrades include deteriorating financial fundamentals companies such as
weakening of premium sustainability, operating performance and capital relative to the business
portfolio (with statutory risk-based capital under 250% on an ongoing basis) due to growth or
claims of disaster excessive losses.
(Bangalore Ratings Team, Hotline: +91 80 6677 2513 Debanjali.Ghosh@thomsonreuters.com, Group
id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: