Fitch Ratings re-affirm Maipark IFS BBB
JAKARTA: PT Fitch Ratings Indonesia re-affirm PT Asuransi Maipark Indonesia rating at national insurer financial strength (IFS) BBB(idn) with stable outlook.
Based on Fitch research this week, Fitch Primary Analyst Terrence Wong said the rating reflects Maipark's experienced management team, secure premium source, strong liquidity, generally prudent retrocession coverage, and solid risk-based capitalization.
"The rating also reflects the insurer's ability to achieve profitable growth over the past 7 years since its establishment," said him in the statement. He added, the company is owned by all general insurance and reinsurance companies in Indonesia.
Maipark has consistently recorded underwriting profits notwithstanding the occurrence of several major earthquakes in Indonesia after its inception as earthquake reinsurer in December 2003.
Maipark is an abbreviation for Maskapai Asuransi Indonesia (MAI) and Perusahan Asuransi Risiko Khusus (PARK). MAI was the oldest General Insurance Company in Indonesia and its license was purchased by 32 founding shareholders on 23rd December 2003 at a General Shareholder Meeting.
While the company has made progress in building its insurance book of business, its combined ratio averaged 68.1% over the past five years, trending downward to 60.6% in 2010 from 82% in 2006.
Fitch believes the revision of tariff in 2010 along with initiatives in broadening its product range will further underpin Maipark's premium expansion and underwriting profitability in the near term.
Right now, Maipark is in a process to become a reinsurance company from previously only an insurance company.