Asuransi Astra's profitability stays strong, backed by parent group's business: AM Best

Its investment portfolio is moderately risky, mainly comprising domestically rated bond funds.

PT Asuransi Astra Buana is perceived by AM Best to have a very strong balance sheet strength, characterised by robust risk-adjusted capitalisation, which is expected to remain solid going forward.

The company's investment portfolio is moderately risky, mainly comprising domestically rated bond funds. However, there's elevated counterparty credit risk due to exposure to domestic reinsurance companies not rated on an international scale.

Asuransi Astra's operating performance is deemed strong, evidenced by consistently profitable business, particularly from its parent group, PT Astra International Tbk (Astra group). 

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The company's underwriting performance remained robust, with net income reaching IDR1.4t in 2023.

In terms of business profile, Asuransi Astra holds a prominent position in Indonesia's insurance market, particularly in general insurance, with a diversified portfolio across various lines of business. 

However, there's a concentration in Indonesia and a moderate distribution channel concentration to a financial leasing company.

Overall, AM Best considers Asuransi Astra's enterprise risk management (ERM) framework appropriate given the size and complexity of its operations, contributing to its strong overall ratings.