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Feb 3 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has affirmed the Insurer Financial Strength ratings (IFS) and Long-Term Issuer Default Rating (S) PT Asuransi Export Indonesia (Persero) (ASEI) respectively at ‘BBB-'. Fitch also affirmed the National IFS rating and National Long-Term Rating respectively at ‘AAA (idn)'. Outlook for all ratings is stable.
National IFS rating of ‘AAA’ denotes the highest ranking given on a national scale for the country. The rating given to the policyholder liabilities of the insurer with the lowest credit risk relative to all other issuers or obligations in the same country, without distinguish all industries and types of liabilities.
Rating ASEI consider specific policy role as the sole provider insurance of export of non-oil and gas, and government ownership of 100%. role ASEI summed up in the clause in the Regulation of the Minister of Finance who concluded that ASEI has been designated “for and on behalf of the Government shall guarantee Export Credit Insurance and Export ”.
ASEI continues to maintain a strong capital buffers to support underwriting as measured by the ratio of risk-based capitalization (RBC), which is equal to 566.84% at end-June 2013 (end of 2012: 552%). This is well above the requirement regulatory minimum of 120%.
ASEI gross premiums reached IDR658, 7BN until the end of June 2013, growing in line with the company’s projections. Based on financial statements that do not audited, net income amounted to IDR45 ASEI, 3bn for the year ended in June 2013, along with the results of the previous year due to experience improved claims and lower costs offset by investment returns lower.
The main drivers for the increase in the International ranking IFS is increasing government ratings, because ratings ASEI correlated with ratings Indonesian government. National IFS rating ASEI already at the highest level at this time. The main drivers for the drop in both national rankings and International IFS including weakening the perception of government support on ASEI when needed. Decrease in ranking government could also lead to the same movement with the International ranked IFS ASEI.