Life insurance investment results rose 568.9 percent


JAKARTA, – The results of investments in life assurance underpin the total revenue growth of the sector during the first quarter of 2019. It is known that the total revenue of the sector in the first quarter of 2019 was R $ 62.23 trillion or grew 19, 7%.

The investment income obtained in the first three months of 2019 was R $ 13.41 trillion or rose 568.9% compared to the same period last year of minus R $ 2.86 trillion.

The Chairman of the Board of Directors of the Indonesian Life Insurance Association Budi Tampubolon said the improvement in investment performance was influenced by the improved conditions in the Indonesian capital market earlier this year.

"The improvement in the capital markets was marked by improvements in JCI during the first quarter of 2019," Budi said at the AAJI House in Jakarta on Thursday (06/20/2019).

Read also: Premiums down, life insurance income grows 19.7 percent in the first quarter of 2019

However, the number of investments included in total assets decreased by 2.9% from R $ 491.52 trillion in the first quarter of 2018 to Rp 477.08 trillion for this year. The value of the investment are the funds of the holders of life insurance policies invested in the Indonesian market.

According to Budi, the decline in the number of investments was influenced by the decline in the various types of investments. It is known that the deposit instruments for the life insurance industry decreased by 14.6%. Investments in the form of land and buildings also fell by 25.6%.

"The life insurance investment portfolio is still shifting from investment instruments in deposits and mutual funds to equity instruments and bonds," said Budi.

In the life insurance sector, Mutual Fund investment instruments continue to be the main contributors, with a ratio of 34.6%. However, compared to last year, there was a decrease of 4.2%.

In addition, equity instruments accounted for 32.7% of total investment, an increase of 4.4% over the previous year.

The rest is government bonds, with 14.3%, 2% higher and deposit instruments, with 8.1%.


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