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Media Gathering 2022

18 Nov 2021
Media Gathering 2022

In the series of events for Tugure's 35th anniversary, PT Tugu Reasuransi Indonesia (Tugure) held a Media Gathering by inviting several Indonesian local media crews on April 18 2022 located in the Lobby and Rooftop of the Tugure building.

This activity was carried out to coincide with Tugure's 2022 Annual General Meeting of Shareholders, on this occasion Tugure's Management conveyed the performance results achieved in 2022. Where Tugure succeeded in experiencing positive performance growth in 2021 supported by significant net profit growth. The company's realization was higher than the performance of the reinsurance industry in general.

Based on the audited financial report as of December 31 2021, the company posted profit after tax of IDR 26.86 billion at the end of 2021. This realization grew by around 93.51 percent compared to the company's profit after tax in 2020 which was recorded at IDR 13.88 billion.

President Director of Tugure, Adi Pramana, explained that this positive achievement was inseparable from the company's efforts to balance the business portfolio, especially for the general reinsurance line. Tugure changed its business portfolio, especially in fire or property insurance so that in 2021 its composition is more balanced compared to other business lines.

"In the midst of the Covid-19 pandemic, we are rearranging our business portfolio so that it is more balanced. The company is also actively anticipating the impact of the pandemic on a number of insurance business lines, especially credit insurance. For underwriting, the company is more vigilant and selective, especially for industries that have the potential to be affected by a pandemic," explained Adi Pramana during the presentation of the company's performance accompanied by Tugure's board of commissioners and directors, Monday, April 18 2022.

The company's after-tax profit growth in 2021 was supported by underwriting results of IDR 1.18 billion and investment results of IDR 109.89 billion in 2021. On the other hand, the company's total operating expenses were recorded at IDR 93.22 billion, down 16.83 percent compared to 2020 which was recorded valued at IDR 112.08 billion.

"Last year, the company recorded a gross premium of IDR 2.26 trillion, with more than 50 percent of this income coming from voluntary business in general reinsurance. For this business unit, the Facultative Financial Risk business line recorded a growth of up to 8 percent. Facultative Casualty & Energy increased 6 percent. Meanwhile the Facultative Marine & Aviation line posted a gross premium of 87 percent compared to last year and the Facultative Property & Engineering line posted a gross premium of 26% compared to last year," he explained

Adi added that Tugure earned gross premiums from the treaty business, an increase of 15 percent compared to the previous year, and the life reinsurance line contributed 76 percent of gross premiums compared to 2020.

At the end of 2021, the company's assets were recorded at IDR 4.35 trillion with a total investment of IDR 2.07 trillion. Tugure's solvency level (risk based capital/RBC) at the end of 2021 will reach 230 percent, an increase from 226 percent as of 31 December 2020.

In addition, Adi said that this achievement shows the success of the company's long-term efforts to change the pattern of reserves to be more conservative since 2019. During the pandemic, revenues decreased, but these more conservative reserves could make up for the reduction in income in 2020.

On the investment side, Adi said that the company often takes advantage of the momentum in 2020 and 2021. It is not surprising, he explained, that investment income in this period can provide quite good results.

Based on OJK data, the reinsurance industry's gross premium in 2021 fell 16.35 percent to IDR 18.85 trillion with underwriting income growing 8.88 percent to IDR 10.39 trillion. "The authorities also noted that the total assets of the reinsurance industry in 2021 grew 6.54 percent to IDR 28.75 trillion, while the total investment decreased 0.24 percent to IDR 15.25 trillion," he said.

This positive performance, according to Adi, could not be separated from Tugure's efforts in implementing internal strengthening strategies and corporate governance in each division. Adi gave an example of the Group Human Resources Department (HRD) & General Services Tugure in 2021, which includes pushing for a more agile working group restructuring and prioritizing information technology.

The Group Corporate Secretary, said Adi, ensures the implementation of governance for shareholders, directors and commissioners, ensures legal services in the company, and maintains the company's positive branding.

"Group Compliance has also implemented things including strengthening compliance with regulations according to regulations and compliance in reporting to the OJK as well as increasing compliance culture through outreach and compliance campaigns, and increasing risk awareness in all lines of the company" he said.

Meanwhile, the Tugure IT Group in 2021 will develop applications including completing modules to accelerate process integration and proper data accuracy.

In addition to spurring performance and strengthening governance, Adi added that Tugure also continues to realize corporate social responsibility (CSR) programs on an ongoing basis referring to the implementation of SGD's. "Indeed, we have not implemented all aspects, but we are committed to continuing to improve these points," he concluded.


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