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Life Insurance Company Reset Investment Portfolio

 The step of reorganizing the investment portfolio began to become a concern for life insurance players. Moreover, when capital market conditions began to improve after the pandemic, although there were still inhibiting sentiments.

For information, life insurance investment assets can still grow by around 5.75% YoY, based on OJK data as of June 2022. Where, in June 2021 it was recorded at IDR 492.35 trillion to a value of around IDR 520.68 trillion, one year later.


Meanwhile, Astra Life is one of those that began to reorganize its investment portfolio. President Director of Astra Life Windawati Tjahjadi said that the portfolio in stocks began to increase. 

"Now that the index has started to rise again, we see that in recent months it has started to increase again for stock-based ones, but it is still not stable," said Windawati, not long ago.

Meanwhile, Astra Life's total assets, which include investment assets, were recorded at IDR 7.4 trillion as of the first semester of 2022. This value increased by around 11% from the previously recorded Rp 6.6 trillion.


Meanwhile, President Director of BRI Life Iwan Pasila said that his party is still disciplined to make investments under the investment policy that has been prepared based on the type of risk that is covered, the duration of obligations, the quality of the type of investment, and the desired level of liquidity.


Where, until the end of July 2022, the total investment reached IDR 15.89 trillion, consisting of a nonunlink (UL) portfolio investment of IDR 12.17 trillion and a UL portfolio of IDR 3.72 trillion.

"We do this to ensure that we manage policyholder funds properly and correctly so that we can fulfill all obligations on time," said Iwan, last weekend.


Iwan detailed that for the non-UL portfolio, BRI Life placed funds of IDR 7.14 trillion or around 59% on SUN. Furthermore, about 18% on corporate bonds, 14% on money market mutual funds, and 7% on deposits. 


Furthermore, BNI Life Finance Director Eben Eser Nainggolan said that in investment management, the majority is currently still dominated by macroeconomic factors such as geopolitical tensions between Russia and Ukraine and inflation in the United States which reached the highest level in the last 4 decades.

"The slowdown in the world economy and Indonesia's inflation, which reached the highest level in the last 5 years, have also made the Indonesian stock and bond markets move quite volatile," said Eben.


BNI Life's largest investment assets lie in mutual funds of around 44% of total assets and most of them are fixed-income mutual funds. As of July 2022, the company's total investment assets amounted to IDR 20.7 trillion, an increase of 5.1%.


Life Insurance Jumbo Assets

Meanwhile, the growing investment portfolio makes some of these life insurance companies have total jumbo assets for their conventional businesses. For example, BRI Life and BNI Life are among the top 10 in terms of total assets as of June 2022.

BRI Life recorded total assets in the period worth Rp 19.87 trillion. This figure increased by 17.50% YoY from the same period last year which was only around Rp 16.91 trillion.


"The total investment wealth in BRI Life continues to grow due to the premium growth that we continue to strive for amid a contracting market," said Iwan.


"The total investment wealth in BRI Life continues to grow due to the premium growth that we continue to strive for during a contracting market," said Iwan.


Meanwhile, BNI Life also has jumbo assets worth IDR 21.41 trillion and there is an increase of around 4.39% YoY as of June 2022. The value in the same period last year was only around Rp 20.51 trillion.


Allianz Life is also one of the life insurance companies that have other jumbo assets with a value of Rp 38.2 trillion. It's just that there is a slight decrease of about 1.57% YoY.


"Uncertain market conditions are a challenge for the growth of investment assets," said Director & Chief Financial Officer of Allianz Life Indonesia Edwin Prayitno.


However, the position of the life insurance company with the largest total assets is still held by Prudential. Where, its total conventional assets were recorded at around Rp 62.1 trillion, down slightly by 1.27% YoY.


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