Pertamina’s Insurance Subsidiary Recorded 145% Net Profit Growth

2 months ago . 1 min read
EV
Elisa Valenta
Senior Writer at Forbes Indonesia
Pertamina’s Insurance Subsidiary Recorded 145% Net Profit Growth
(Courtesy: Tugu Insurance)

General insurance company PT Asuransi Tugu Pratama Indonesia (TUGU) booked skyrocketing net profit in 2019 amid economic volatility. The insurance company affiliated with the national oil company, PT Pertamina recorded Rp 505.7 billion last year, a 145% increase from 2018.

TUGU's president director, Indra Baruna, stated that its main insurance products strongly supported the increase in net profit in the energy, aviation, and manufacturing sector. "The increase in premiums was contributed mainly from aviation products, fires, engineering to vehicles," Indra said.

Tugu Pratama has generated Rp 6.4 trillion in revenue from premium's income, up from Rp 5.1 trillion in 2018. Premium from motor vehicle products grew 125% to Rp 204 billion last year, and it contributed significantly to the total growth compared to the previous year.

Currently, Tugu Insurance has total assets of Rp20.7 trillion, an increase of 18.9% compared to the same period last year of Rp17.4 trillion. While the company's equity increased 11.5% from Rp 7.4 trillion to Rp 8.3 trillion with the Risk-Based Capital (RBC) level of 434% which is far above the minimum limit of the Financial Services Authority (OJK) provision of 120%

To improve TUGU's performance, Indra added, the company plans to introduce new insurance products outside of its core market this year. In addition to insurance in the energy sector, Tugu Pratama has insurance products for cargo and shipping, life, sharia, and health.

EV
Written By
Elisa Valenta
Senior Writer at Forbes Indonesia
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