Post On : August 23, 2023
Fitch Ratings Indonesia has submitted a National Insurer Financial Strength (IFS) Rating for PT Reasuransi MAIPARK Indonesia (MAIPARK) at ' A(idn) ' with a Stable Outlook. Despite of market uncertainty, MAIPARK Indonesia has managed to maintain its ' A(idn) ' Rating for 3 consecutive years.
MAIPARK's ability to significantly improve its company profile in the market and to have stronger level of retrocession protection resulted in maintaining a three-year average return on equity of 10 % with proper risk management and financial fundamentals.
MAIPARK's capitalization measured by risk-based capital (RBC) is at 977% by the end of 2022 which above the regulatory minimum requirement of 120 %.
Managing exposure to disaster risk is the key to MAIPARK's capital and income because it is concentrated on earthquake risk. The company has an internal disaster modeling tool, MAIPARK Catastrophe Modeling, and an enterprise risk management system to monitor its risks closely.
70% of MAIPARK's investment is placed in cash, time deposits and fixed income securities by the end of 2022, with the ratio of liquid assets maintained at a high level of 2,526%. MAIPARK has increased its allocation to mutual funds to diversify its investment portfolio and increase yields.
