Pertamina-Owned Insurance Company, Tugu Insurance Receives IDR 271 Billion Profits During 2020

Tugu Insurance officials pose after the 2020 Annual General Meeting of Shareholders (Photo: Doc. Antara)

JAKARTA - PT Asuransi Tugu Pratama Indonesia Tbk. (Tugu Insurance) managed to score a positive performance in 2020 with a net profit of IDR 271 billion. However, the profit book fell from the 2019 period before the pandemic with IDR 505 billion.

Tugu Insurance Marketing Director Budi P. Amir said that the 2020 period was a year full of challenges. He said that the COVID-19 pandemic, the weakening economy, and the weakening of the stock market were the main contributors to the company's decline.

"Since the pandemic, we have continued to make improvements in business processes, especially by implementing technology to ensure that products and services do not decline in quality," he said in an official statement, Wednesday, May 5.

Budi explained, from the current financial position, Tugu Insurance's total assets amounted to IDR 19.46 trillion, or a decrease compared to 2019 of IDR 20.73 trillion.

Then, especially from reinsurance assets in line with the settlement of several large claims which was also reflected in the decrease in liabilities from IDR 12.46 trillion to IDR 11 trillion.

Meanwhile, total equity has increased to Rp8.46 trillion compared to 2019 amounting to Rp8.27 trillion.

Then, the total consolidated income decreased by 14.8 percent to Rp2.46 trillion from Rp2.89 trillion in the previous year.

"The total consolidated expense in 2020 has decreased by 6.21 percent to Rp2.12 trillion in line with the effectiveness and efficiency of the process being carried out," he said.

Furthermore, earnings per share attributable to owners of basic and diluted parent entities also decreased to Rp149 per share from Rp258 per share in the previous year.

Currently Tugu Insurance has a solvency ratio of 427.6 percent, down slightly from 434.3 percent in 2019.

"However, this value is still far above the minimum stipulated by the Financial Services Authority of 120 percent," he said.

Based on information from the Indonesia Stock Exchange, Tugu Insurance is a public insurance company controlled by Pertamina with 58.5 percent share ownership. Followed by UOB Kay Hian Pte Ltd. 15.8 percent, and the rest is owned by other parties.

"In the midst of difficult and challenging times, we managed to maintain the international rating of AM Best for 5 consecutive years with a value of Financial Strength Rating A (excellent) and Long Term Issuer Credit Rating A," Budi concluded.