MPMInsurance Achieves Positive Growth

KatadataOTO – PT Asuransi Mitra Pelindung Mustika (MPMInsurance) achieved positive growth in 2024. They once again received an A+ rating from Fitch Ratings.

The achievement above was supported by several factors. One of them is that the total annual premium increased by 23 percent from January – September 2024.

Whereas in the previous year (2023), a decrease of 4 percent was recorded. This was suspected to be due to a reduction in the contribution of multipurpose loans from the total premiums in September 2024.

It was stated that MPMInsurance focuses on motor vehicle and property insurance. Both dominate the premiums with figures of 30 percent and 43 percent.

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Meanwhile, the company's combined ratio of profitability and financial health increased by 2 percent compared to 2023.

The increase from 96 to 98 percent in 2024 was influenced by high commissions and operational expenses related to business expansion.

Then, the ROE (Return on Equity) reached 9 percent as of September 2024. This was thanks to optimal investment returns.

Furthermore, in terms of risk management, MPMInsurance's RBC (Risk-Based Capital) has remained at 250 percent for the last five years.

It was even stated that by the end of September 2024, it had reached 388 percent. The company's equity balance is already above IDR 250 billion and will be effective in 2026.

It was mentioned that MPMInsurance has mitigated risks by reducing its dependence on domestic reinsurance.

They also maintained the basic capital for reinsurance returns at a rate of 118 percent. This is 65 percent higher than the non-life industry average.

However, Fitch itself noted a risk from the deteriorating credit quality of domestic reinsurance.

In the period as mentioned above, MPMInsurance successfully demonstrated healthy finances, while maintaining a satisfactory level of liquid assets.

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Fixed income and cash equivalents are believed to still comprise 80 percent of the average investment portfolio in the 2021 to 2023 period.

For MPMInsurance's brilliant achievement in the January – September 2024 period, Fitch awarded an A+ rating.

“This is tangible proof of our commitment to continuously innovate and provide the best service to customers. With the right strategy and solid risk management, we are optimistic that we can maintain customer trust and also face various challenges,” said Poppy Panca, Deputy Director of Marketing at MPMInsurance in an official broadcast.