AM Best Affirms Credit Ratings of PT Asuransi Astra Buana

SINGAPORE--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent), the Long-Term Issuer Credit Rating of “a-” (Excellent) and the Indonesia National Scale Rating (NSR) of aaa.ID (Exceptional) of PT Asuransi Astra Buana (Asuransi Astra) (Indonesia). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Asuransi Astra’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The ratings also factor in a neutral impact from Asuransi Astra’s ultimate parent, Jardine Matheson Holdings Limited (Bermuda).

Asuransi Astra’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which was at the strongest level at year-end 2025, and is expected to remain at this level over the medium term. The company has consistently demonstrated robust internal capital generation, with shareholders’ equity increasing by 17.1% in 2025. AM Best views Asuransi Astra’s investment portfolio to be of moderate risk, with a majority of investments allocated to bonds and mutual funds, comprising mainly domestically rated bond funds. An offsetting balance sheet strength factor is the company's elevated counterparty credit risk due to its exposure to domestic reinsurance companies not rated on an international FSR scale.

AM Best also views Asuransi Astra’s operating performance as strong. The company reported robust operating profits in fiscal-year 2025, with a return-on-equity ratio of 18% and a combined ratio (net/net) of 81.7%, as calculated by AM Best. Asuransi Astra has consistently generated underwriting profits, supported by profitable business from its parent group, PT Astra International Tbk (Astra group). Investment returns remain a stable contributor to the company’s overall earnings. Prospectively, AM Best expects Asuransi Astra to continue delivering a strong operating performance, supported by favourable underwriting performance and robust investment income.

AM Best assesses Asuransi Astra’s business profile as neutral. Asuransi Astra is a large insurance organisation in Indonesia, ranking second in the country’s general insurance market based on 2025 gross premiums written. Asuransi Astra benefits from being a subsidiary of the Astra group, having preferential access to business from it, especially in the motor line of business. The company’s portfolio is viewed to be diversified by line of business with key lines being motor, personal accident and health and fire insurance, although with geographic concentration in Indonesia. Asuransi Astra has moderate distribution channel concentration to a financial leasing company, mainly in respect of its motor insurance business. Notwithstanding, distribution channels are viewed to be broadly diversified for the non-motor business.

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 Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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