Post On : August 20, 2021
Fitch Affirms MAIPARK at National IFS 'A(idn)'; Outlook Stable
Mon 16 Aug, 2021 - 1:57 AM ET
Fitch Ratings - Sydney - 16 Aug 2021: Fitch Ratings Indonesia has affirmed PT Reasuransi MAIPARK Indonesia's National Insurer Financial Strength (IFS) Rating at 'A(idn)' with a Stable Outlook.
'A' National IFS Ratings denote a strong capacity to meet policyholder obligations relative to all other obligations or issuers in the same country or monetary union, across all industries and obligation types.
KEY RATING DRIVERS
MAIPARK's underwriting performance has been satisfactory with an average combined ratio of 81% over 2018-2020. Its overall profitability has been favourable, supported by positive investment income and a strong retrocession programme. Its 2018-2020 average return on equity was 12%.
Exposure to risky assets, which include unaffiliated stocks and non-investment-grade bonds, is manageable compared with its equity. The pandemic-related financial market volatility has not had a significant impact on the company to date.
The company has an internal catastrophe modelling tool and enterprise risk-management system to monitor its risks more closely. We believe MAIPARK's probable maximum loss after retrocession coverage is controlled at a manageable level relative to capitalisation.
