Insurance companies prefer to invest in SBN
JAKARTA. The life insurance industry recorded total investment assets placed in government securities (SBN) reaching IDR 182.23 trillion. This amount is equivalent to 33.67% of the assets of the insurance industry incorporated in the Indonesian Life Insurance Association (AAJI).
In the AAJI presentation today, Tuesday (2/27/2023), the second largest investment asset of other life insurance companies is shares, which amounted to IDR150.36 trillion. This amount shrank from the 2022 placement which reached IDR 158.39 trillion.
The third choice of asset placement is mutual funds where 56 existing life insurance companies put their managed funds in the instrument amounting to IDR 78.2 trillion. This amount has fallen sharply in the last 3 years. In detail, in 2021, investment in mutual funds reached IDR 165.37 trillion, then fell to IDR 105.35 trillion in 2022. And declined again this year.
Furthermore, in order, life insurance companies' investments are corporate sukuk (IDR 44.08 trillion), deposits (IDR 40.05 trillion), direct investment (IDR 24.98 trillion), buildings and land (15.71 trillion), and others (IDR 4.56 trillion).
From this data, it can be seen that the placement that was originally in stocks, mutual funds, and deposits has rebalanced to SBN.
Head of the AAJI Investment Department Rahmat Syukri said that the increase in investment in SBN is part of fulfilling the regulations set by OJK. In addition, along with the long-term life insurance guarantee business in accordance with the characteristics of SBN with stable returns.
"Our total investment in SBN until the end of 2023 reached IDR 183.23 trillion, up 28.2% compared to 2022. [The placement in SBN is also] in accordance with regulations that encourage the placement of more funds in SBN, we see that SBN matches the characteristics of long-term life insurance contracts, and this increase strengthens the life insurance industry's support for the government's long-term development," said Syukri in Jakarta.
He said regulations from the OJK for insurance companies to place their managed funds in SBN will be fulfilled by the industry. "OJK has regulated the portion of life insurance investment placement and we are committed to comply with these rules," he said.
This obligation itself, according to Syukri, is also relatively good for the company. This is because the investment return of the life insurance industry increased by 46.2% to a total of IDR 32.03 trillion. "We always prioritize the principle of prudence and adjust investment placement to the characteristics of the company's business," continued Syukri.
Budi Tampubolon, Chairman of AAJI, said that currently the total assets recorded until the end of December 2023 reached IDR 614.61 trillion. This amount increased 0.7% on an annual basis from IDR610.38 trillion. While investment assets rose 0.8% from IDR 537.1 trillion to IDR 541.17 trillion. Budi added his hope for the industry to further strengthen its commitment in providing protection and services to the people of Indonesia. (PP/LM)
