Wanting To Strengthen Capital, Indonesia Re Proposes PMN Of IDR 1 Trillion

Photo: Doc. Antara

JAKARTA - PT Resurance Indonesia Utama (Persero) or Indonesia Re will again apply for Government Capital Participation (PMN) worth IDR 1 trillion from government investment reserve funds in 2024 as an effort to strengthen the company's capital.

In addition, the company also opens the possibility of submitting a subordinated loan to the Ministry of Finance, and collaborating with strategic investors, which will be prioritized for additional capital, especially maintaining the company's solvency.

"With a strong capital base, it is hoped that Indonesia Re can gain international rankings and open up business opportunities in the global market," said Indonesian President Director Re Benny Waworuntu at the Media Engagement Day in Bandung City, West Java, quoted from Antara, Friday, December 15.

Benny continued, the company has prepared a strategic business plan, to maintain financial health conditions, where in the short and medium term, the company will make improvements to Net Underwriting Results (HUB) in general reinsurance and mental reinsurance, adjustments in the management of investment assets and receivables, and efficiency in operating costs.

"Meanwhile, in the long term, the company will seek additional capital applications to shareholders," said Benny.

He explained that the steps to improve HUB in general reinsurance were to improve the portfolio in all lines of business, increase in the premium of reinsurance, decrease in the insurance commission, improve pricing, and tightening in various procedures.

In the life insurance business, he continued, the company is more selective in its business acceptability, and carries out a portfolio recovery program with an increase in premium rates, improvements to Terms & Conditions and Underwriting, termination of businesses with negative contributions, and optimization of product development unit functions.

Meanwhile, in terms of improving investment asset management, Benny explained that the company will undergo rebalancing assets, strengthening governance, investment policies with a Liability Driven Investment approach, as well as investment strategies that prioritize the solvability and risk management aspects of portfolios rather than the profitability aspect.

Until November 2023, Indonesia Re recorded improvements in Net Underwriting Results (HUB). Achieved IDR 82 billion, or an increase compared to the previous year's IDR 21 billion.

Meanwhile, the investment amount was recorded at IDR 6.3 trillion as of November 2023, or an increase compared to the previous year's IDR 5.9 trillion.

Indonesia Re continues to strive to implement strategies and policies to increase its strong business portfolio, and can survive in various industrial challenges. We are optimistic that with its commitments and capabilities, Indonesia Re will produce better performance in 2024," said Benny.