SINGAPORE, May 20 (Bernama-BUSINESS WIRE) — AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” (Good) of PT Asuransi Jasa Indonesia (Asuransi Jasindo) (Indonesia).
This Credit Rating (rating) action follows a significant deterioration in Asuransi Jasindo’s underwriting performance emanating from the company’s credit insurance business. Whilst the company’s 2020 audited financial statements have yet to be finalised, summarised regulatory filings for 2020 and for the first quarter of 2021 indicate a marked deterioration in operating performance, as well as reserve strengthening and capital erosion, which has led to a significant fall in the company’s local regulatory solvency ratio. As of 31 March 2021, the company’s solvency ratio was only marginally above the minimum regulatory requirement.