The Results Of The TUGU Insurance Service Reached Rp228 Billion After The Implementation Of PSAK 117

JAKARTA In the midst of the implementation of PSAK 117 for the insurance industry, Pertamina Group's subsidiary, PT Asuransi Tugu Pratama Indonesia Tbk (TUGU), continued to record solid financial performance in the first quarter of 2025.

As of the end of March 2025, TUGU's total assets reached IDR 30.1 trillion.

This is the first time in the history of the largest general insurance company in terms of market capitalization value has reached this historic milestone.

When compared to the end of December 2024, which used the financial report which was presented again (rested) due to the implementation of PSAK 117, there was an increase of IDR 3.3 trillion.

Meanwhile, the equity value of TUGU also reached IDR 11.0 trillion at the end of March 2025 or an increase of IDR 549 billion when compared to the report on the position of finance in December 2024 (rested).

Meanwhile, in terms of profit attributable to owners of the main entity, TUGU pocketed IDR 247 billion, a decrease of 30 percent compared to the same period the previous year.

However, regarding this decline, capital market analysts said that under transitional conditions using PSAK, the new increase or decline in financial posts was normal.

"The increase or decrease in balance sheet and profitability is not only experienced by TUGU, but also the overall industry, both general insurance, reinsurance and life insurance. The market does need time to understand this new PSAK," said Kharel Devin, Trimegah Sekuritas analyst.

However, according to Kharel, to better understand PSAK 117, Kharel explained, investors can see in the description, especially the comparison between PSAK, which was previously PSAK 62, which was previously the basis for the presentation of financial reports.

"In the TUGU case, if you use PSAK 117 for the first quarter of 2025 which has become the best practice global, the insurance service results reach Rp227.8 billion while using PSAK62 is only Rp185.2 billion. There is an increase of Rp42.5 billion using PSAK 117 which uses an insurance contract approach and which becomes more transparent and reflects the real financial conditions of general insurance companies," he said.

In line with Kharel, Nurwachidah analyst Phintraco Sekuritas also explained that TUGU as a public insurance holding company is more than 90% of its business supported by the insurance segment, so seeing the performance of the company's core performance activities can see directly in terms of insurance services.

"If you look at the results of insurance services, it still grows 8.7% from Rp209 billion in Q1 2024 to Rp228 billion in Q1 2025. Indeed, there are adjustments in terms of expenses and other posts, but core business remains here. While growing, this shows that solid performance and expansion strategies are going well," said Nurwachidah.

According to Nurwachidah, the readiness of TUGU in implementing PSAK 117 will further reflect the Company's real condition.

"It is in accordance with the best practice global so that if there are investors, especially foreigners who want to enter TUGU shares, the comparison is more apple to apple. In addition, the increase in assets and equity also shows an increasingly strategic TUGU position in the industry and the capital strength it has in navigating various challenges", he added.

Regarding prospects, Nurwachidah remains optimistic that the financial performance and profitability of TUGU, which is the issuer of Pertamina's BUMN children, can still grow solidly.

According to him, in addition to adjustments due to the new PSAK, seasonal aspects or seasonality also play a role in the performance of insurance companies.

To note, PSAK 117 is an adoption of IFRS 117 which has been implemented globally since 2023. The implementation in the country has only been carried out starting January 1, 2025.

For the record, important changes in PSAK 117 are First, insurance or premium income is not immediately recognized at once, but is recognized in stages according to the coverage period.

Second, the liabilities of insurance companies are calculated based on future claim payment estimates, plus margins for uncertainty.

Third, there is a new measurement called Contractual Service Margin (CSM), which is the estimated future gains that insurance companies expect from a group of contracts, which are recognized gradually as revenue during the contract period, not at the same time at the beginning.

The main goal is to provide an overview of profitability that is more accurate and transparent in line with the service provided to policyholders, so that profits are not recognized too quickly in advance, but are in line with the realization of services provided.