PT Asuransi Tugu Pratama Indonesia Tbk (TUGU) has posted impressive financial results for the third quarter of 2024, recording a 23% year-on-year growth in total revenue. The company’s gross premium income reached IDR 6.8 trillion, reflecting a 26% increase compared to the same period in the previous year.

The primary drivers behind this growth were the company's Fire & Property, Engineering, and Marine Hull business segments. These areas contributed significantly to the premium increase, which further solidifies TUGU’s position as one of the leading insurance providers in Indonesia.

Presiden Direktur Tugu Insurance, Tatang Nurhidayat, emphasized the company’s focus on its five strategic pillars to achieve its vision of becoming Indonesia's number one general insurance company. These pillars are: growth of business, corporate action by reinvestment, asset transformation, people transformation, and process transformation & risk management. “We continue to expand our market reach and improve our products, services, and distribution channels to better serve our clients,” he said during the company's public exposure on December 4, 2024.

In 2024, TUGU Insurance has increased its focus on non-captive business lines, particularly targeting State-Owned Enterprises (SOEs). The company reported IDR 1.3 trillion in gross premiums from this sector, a remarkable 107% year-on-year growth by September 2024. Meanwhile, the non-captive premium from other businesses reached IDR 4.1 trillion, showing a 15% YoY increase.

For its captive business with the Pertamina Group, TUGU recorded IDR 1.4 trillion in premiums, a 15% increase YoY. This consistent performance across different business sectors demonstrates TUGU's effective diversification strategy.

Alongside the premium growth, TUGU’s net revenue increased by 20%, from IDR 2.3 trillion in September 2023 to IDR 2.8 trillion in 2024. The company’s total revenue for September 2024 reached IDR 1.6 trillion, again a 23% YoY increase. This growth was mainly driven by improved underwriting results, which rose to IDR 725 billion, up from IDR 520 billion in the same period last year. Additionally, operational income grew from IDR 347 billion to IDR 420 billion in September 2024.

Despite the challenges posed by a drop in other income from the resolution of a legal case with Citibank in 2023, TUGU Insurance’s core profit surged by 120% YoY, from IDR 269 billion in 2023 to IDR 592 billion in 2024. This reflects the company’s robust operational growth, excluding one-off gains.

Furthermore, TUGU Insurance's Risk-Based Capital (RBC) as of September 2024 stands at an impressive 483%, significantly above the OJK’s required minimum of 120%. The company's Investment Adequacy Ratio (RKI) also remains strong at 618%, far surpassing the industry average of 186%. These high solvency levels indicate the company's solid financial health and its ability to meet future obligations.

As TUGU Insurance prepares for the implementation of PSAK 117, the company is finalizing its IT infrastructure to support this transition, ensuring smooth adoption of the new reporting standards in 2025. The strong financial results and strategic expansion into new business areas suggest that TUGU Insurance is on track to maintain its growth trajectory and further solidify its leadership in the Indonesian insurance market.

IDX