KUALA LUMPUR, March 29 (Bernama) -- AM Best has revised the outlook to negative from stable, for the Long-Term Issuer Credit Rating (Long-Term ICR) of PT Asuransi Jasa Indonesia (Persero) (Jasindo).
The revision reflects AM Best’s expectation of a decline in the company’s technical performance for full year 2018, following reserving adjustments across its underwriting portfolio, as well as from a deterioration in attritional loss experience for motor business.
AM Best has also affirmed the Financial Strength Rating (FSR) of B++ (good) and the Long-Term ICR of ‘bbb+’ of the company, whereby the outlook of the FSR remains stable, according to a statement.
The ratings reflect Jasindo’s balance sheet strength, which AM Best categorised as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
Although Jasindo’s underwriting performance has been strong historically, there are growing concerns over a negative trend in performance fundamentals, given continued competitive market conditions and the potential for further unfavourable reserve movements.
Jasindo is the third-largest non-life insurer in Indonesia, based on 2017 gross written premiums. As a state-owned entity, it benefits from preferential access to underwriting corporate risks from other state-owned enterprises.
AM Best is a global rating agency and information provider focusing on the insurance industry. For more information, contact www.ambest.com.
-- BERNAMA
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