Full profit retention supports the insurer’s balance sheet strength.
PT KB Insurance Indonesia’s capitalisation remains at the strongest level due to full profit retention.
However, this is partially offset by credit risk exposure to domestic reinsurers with weaker credit quality, according to credit rating agency AM Best.
The ratings reflect the company’s strong balance sheet, adequate operating performance, limited business profile, and appropriate enterprise risk management.
They also account for support from its parent company, KB Insurance Co., Ltd., which holds a 70% stake alongside PT AB Sinar Mas Multifinance’s 30%.
Under the IFRS 17/9 accounting standards, KB Insurance Indonesia recorded a return-on-equity ratio of 7.6% and a combined ratio of 102.5% in 2025.
Whilst underwriting performance saw some deterioration in 2025, profit was supported by business from Korea Interests Abroad and affiliates of its ultimate parent, KB Financial Group Inc. A conservative investment portfolio continues to provide stable returns.
The company remains a small non-life insurer in Indonesia, with business concentrated by line and geography.
Despite diversifying through group affiliates, local market reach remains limited.
A planned restructuring under a new intermediate holding company is expected to streamline decision-making.
AM Best stated that parent company KB Insurance Co., Ltd. is expected to provide capital support if required, including assistance to meet upcoming domestic capital regulations.