Prudential Indonesia And Prudential Syariah Record Solid Business Performance In The Third Quarter Of 2024

Photo: Doc. Prudential Indonesia

JAKARTA - PT Prudential Life Assurance (Prudential Indonesia) and PT Prudential Sharia Life Assurance (Prudential Syariah) recorded positive performance results throughout the third quarter of 2024. The business performance of the two Companies is solid, affirming its commitment to continue to be trusted partners and protectors for the current and future generations, through financial and health solutions that are easily accessible, affordable, and centered on customer needs.

This solid performance was realized in providing the best protection. Throughout the third quarter of 2024, Prudential Indonesia recorded a total claim and benefit of IDR 13.6 trillion, an increase of 4% compared to the same period the previous year, which had been paid for 1.1 million claims.

The company's positive performance is also supported by a healthy financial condition, as can be seen from the solvency level (Risk-Based Capital/RBC) of the two companies which are far above regulatory regulations. In the third quarter of 2024, Prudential Indonesia's (Risk Based Capital) solvency rate was 476 percent. The RBC above the regulator's provisions shows the Company's ability to be able to pay claims in a sustainable and long term.

A solid performance is also shown in terms of investment management, Prudential Indonesia recorded total assets of IDR 61.1 trillion and is trusted to manage total investment assets of IDR 56 trillion. In managing customer investment assets, Prudential Indonesia always implements responsible investment practices.

Karin Zulkarnaen, Chief Customer & Marketing Officer, Prudential Indonesia is grateful for the trust of customers, marketers, and all parties so that Prudential Indonesia's performance remains solid until the third quarter of 2024.

"The RBC Company, which we always maintain above the regulator's provisions, emphasizes our commitment to be able to pay customer claims that are in accordance with the provisions of the policy until the long term, so that customers do not need to worry as long as the claim submission is in accordance with the policy provisions, we will pay. This is in line with our mission to continue to be trusted partners and protectors for the current generation and later," he said, Wednesday, December 4.

Meanwhile, Prudential Syariah also recorded a positive performance to continue to realize the protection commitment for participants to the future. Prudential Syariah has distributed total compensation and benefits claims for participants reaching Rp1.8 trillion until the third quarter of 2024, supported by the solvency level of the Tabarru Fund of 268 percent and the Company Fund of 2,031 percent.

Iskandar Ezzahuddin, President Director of Prudential Syariah, said that his party was grateful for the good achievements during the third quarter of 2024.

"We still see the potential of the sharia insurance industry in Indonesia is still very large, so this achievement is a motivation for us to continue to innovate in producing various financial and health services that are easily accessible, affordable, and centered on the needs of participants according to sharia principles," he explained.

Prudential Syariah recorded total assets and total investment assets of IDR 7 trillion and IDR 6.2 trillion in the third quarter of 2024, growing 4 percent and 1 percent of the same period the previous year.

Prudential Indonesia and Prudential Syariah continue to diversify their product portfolios, one of which is by offering a variety of traditional product options, in order to reach a wider segment of customers. Throughout the third quarter/2024, Prudential Indonesia noted that traditional products experienced growth of up to 29 percent. The increase in sales of traditional products is due to the simple product design so that customers are easier to understand their products, especially for those who are buying insurance products for the first time.

However, both companies still see traditional products and PAYDI complement each other to meet the needs of the community at every level of life, so that it will complement the needs of people who already understand the benefits of insurance, or who need protection and investment products at once. Both in Prudential Indonesia and Prudential Sharia, PAYDI is still an option as a protection product for themselves and their families.

This can be seen from the composition of PAYDI which was recorded in the third quarter of 2024, as much as 77 percent of the total premium income in Prudential Indonesia came from PAYDI. Meanwhile, 60 percent of Prudential Syariah's total contribution income also came from PAYDI.

In the midst of the challenges of global geopolitical issues, the decline in global interest rates, to political conditions in Indonesia, Prudential Indonesia and Prudential Syariah recorded positive performance for the majority of PRULink subdata and even superior compared to the performance of the benchmark index. The two companies implemented an investment strategy that focuses on the convenience of customers in transacting.

Placement in government bonds and corporate bonds that have an investment grade rating (investment grade) is one of the two strategies of the Company in managing a fixed income-based PAYDI investment portfolio (bond) and a mixed-based PAYDI investment portfolio.

Meanwhile, for PAYDI's stock-based investment portfolio, the two Companies always apply the precautionary principle in managing PRULink's sub-dana in accordance with their respective sub-dana investment strategies, including by choosing company shares that have a sustainable business, solid financial performance, quality management, attractive valuation and good liquidity.

To increase PAYDI penetration, Prudential Indonesia and Prudential Syariah always encourage customers/candidates to always choose investment products according to their respective risk profiles. Based on POJK (Financial Services Authority Regulation) Number 44/POJK.05/2020, risk profiles are a comprehensive picture of the large potential risks inherent in customers in investing, which includes conservative, moderate, aggressive, and very conservative risk profiles.

A good understanding of risk profiles can help customers to make wiser decisions to choose suitable insurance products, and avoid unexpected risks.

We believe that every customer has different character, background, and needs, so that their risk profiles are different. This is why, we consistently continue to educate customers to understand their self-risk profiles. Thus, customers can choose the right products and services for themselves and their families, especially for products associated with investment. We urge customers who have PAYDI products of more than 5 years to conduct a review of their risk profiles and subdata, to ensure that the selected subdata are still in accordance with the latest risk profiles, as well as the needs of current and future customers. The hope is that the customer's financial goals can be achieved and customers can be more confident in moving forward in realizing their dreams, "said Karin.

Prudential Indonesia and Prudential Sharia will continue to innovate and strengthen their role in society to become trusted partners and protectors who are able to be able to accompany customers or participants every day.