Fitch Ratings has affirmed that PT Asuransi Allianz Life Indonesia (Allianz Life) will maintain its financial stability, bolstered by the continued backing of its parent company, Allianz SE.
The insurer saw a significant improvement in profitability in 2024, with return on equity rising to 15%, up from 6% in 2023, despite challenges like medical inflation. This positive shift was largely driven by a 9% increase in premium growth, surpassing the 7% growth recorded the previous year, as well as cost reductions achieved through digitalisation initiatives.
Fitch projects that Allianz Life will sustain its profitability, thanks to ongoing improvements in risk selection, pricing strategies, and expense management.
While the company’s risk-based capital (RBC) ratio declined to 260% in 2024 from 290% in 2023—due to dividend payouts and higher technical reserves, particularly from its traditional business—its overall capitalisation remains solid, supported by retained earnings and robust profitability.
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