Jasindo’s adequate risk-adjusted capitalization, as evaluated by Best’s Capital Adequacy Ratio, is supported by its low underwriting leverage. The company has a good profile in the profitable fire segment of Indonesia’s non-life market and has enjoyed strong profitability with limited volatility.

Negative rating factors include Jasindo’s combination of high reinsurance leverage and significant exposure to lower-rated reinsurance assets. While Jasindo’s reinsurance panel includes reinsurers that are of high credit quality, a sizable portion of Jasindo’s reinsurance protection is provided by reinsurers that are of low credit quality by international standards.

A.M. Best does not anticipate positive rating momentum.

Negative rating action could result from higher-than-expected reinsurance asset leverage or lower-than-expected reinsurance asset quality.

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 rating(s) that have been published on A.M. 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 A.M. Best’s Recent Rating Activity web page.

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