AM Best has revised the outlooks to stable from negative and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent). Concurrently, AM Best has affirmed the Indonesia National Scale Rating (NSR) of aaa.ID (Exceptional) of PT Asuransi Tugu Pratama Indonesia Tbk (TUGU) (Indonesia) 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. 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 the outlooks to stable from negative for the FSR and the Long-Term ICR reflect the improvement in TUGU’s operating results in recent periods, with the expectation that prospective operating performance will remain favourable. TUGU has demonstrated a good track record of robust earnings, benefiting in part by profitable business from its parent group, Pertamina. TUGU’s underwriting performance showed improvement in 2024, with a better loss experience on both its primary and reinsurance operations, amidst ongoing portfolio remediation measures. In addition, TUGU continued to generate positive operating earnings in the first nine months of 2025, supported by a good underwriting performance and robust investment income.

TUGU’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level over the medium term. AM Best 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. TUGU has a high dependence on reinsurance to support the underwriting of large commercial risks, including fire, aviation and energy businesses, as well as to manage its exposure to severe catastrophe events. Nonetheless, its reinsurance assets are mainly of good credit quality.

AM Best considers TUGU’s business profile to be neutral. TUGU is a large insurance organisation in Indonesia, ranking third by market share in 2024, in the domestic general insurance market and additionally, it writes reinsurance through Tugu Re. TUGU has a strong market position in commercial and industrial risks, including the energy, aviation, fire and marine hull business segments, and continues to benefit from favourable business access to affiliated business from the Pertamina group. Business diversification is expected to be supported by strategic expansion in the retail business over time.

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 AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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