Fitch Ratings has characterized PT Maskapai Reasuransi Indonesia Tbk (Marein) as having a moderate company profile, highlighting its strong domestic presence but relatively smaller scale compared to global reinsurers. As of the end of 2024, Marein held a 14% market share of Indonesia’s total reinsurance premiums.
The company is undergoing a strategic shift, with non-life reinsurance premiums surpassing life reinsurance for the first time. This change marks a significant expansion in Marein’s portfolio, which Fitch expects to continue, driven by pricing adjustments and diversification efforts.
Marein’s underwriting performance remains stable, with a non-life combined ratio of 97% in 2024, consistent with its three-year average. However, its return on equity dipped to 3% from 4% in 2023, indicating modest profitability. Although Marein’s exposure to credit insurance has increased, particularly in credit life insurance, which now comprises 18% of its life reinsurance portfolio, the risk remains manageable.
The company’s capitalization is considered adequate, though somewhat constrained by its exposure to catastrophe risks. Marein’s risk-based capital ratio decreased to 233% in 2024 from 248% the previous year, a result of premium growth. Despite this decline, Fitch maintains that Marein’s capitalization is good, though its absolute capital size is still smaller compared to larger reinsurers in the Asia-Pacific region.
Marein’s investment strategy continues to be conservative, with more than 90% of its assets allocated to cash, cash equivalents, and fixed-income instruments. Fitch anticipates that the company will continue this prudent approach, minimizing exposure to equity risks while maintaining strong liquidity.
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