AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of PT Asuransi Tokio Marine Indonesia (TMI) (Indonesia). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect TMI’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. In addition, the ratings factor in rating enhancement from Tokio Marine & Nichido Fire Insurance Co., Ltd., which is the main insurance operating entity of Tokio Marine Holdings, Inc. (TMH).
TMI’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), was at the strongest level at year-end 2025, and is expected to remain at this level over the medium term. The company has demonstrated a track record of strong internal capital generation. Shareholders’ equity increased by 21% in 2025, bolstered by full earnings retention. In addition, TMI has a conservative investment portfolio composed of mainly government bonds, cash and deposits. Partially offsetting balance sheet strength factors include the company’s moderate dependence on reinsurance and elevated counterparty credit risk given its exposure to domestic (re)insurance counterparties that are not rated on an international financial strength rating scale.
AM Best assesses TMI’s operating performance as strong, supported by strong and consistent operating earnings and favourable underwriting results. The company’s underwriting performance remained robust in 2025 with a combined ratio (net/net) of 84%, as calculated by AM Best, supported by benign loss experience on its key business lines. In addition, TMI’s investment returns from interest income is also a stable contributor to overall earnings.
AM Best assesses TMI’s business profile as limited. TMI is a small-size, non-life insurer in Indonesia, with a domestic market share of 2%, as measured by 2025 gross premium written. AM Best views the company’s portfolio to be diversified moderately by line of business with key lines including fire, marine and motor insurance, although with a geographic concentration in Indonesia. TMI benefits from preferential access to Japanese interest abroad (JIA) related risks in Indonesia given its affiliation and common branding with TMH. The company also has shown significant growth in non-JIA-related risks over time, particularly for marine cargo.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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