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July 17 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has affirmed the ratings of National Insurer Financial Strength (IFS) PT Asuransi Jiwa Sinarmas MSIG (Sinarmas MSIG) at ‘AA + (idn)'. Prospect is Stable. in time Simultaneously, Fitch also withdraw all its ratings.
Rating from Fitch withdrawal due Sinarmas MSIG has chosen to stop participating in the rating process. Fitch believes public information regarding Sinarmas MSIG is not sufficient to perform the rating action. Accordingly, Fitch will no longer provide ratings or analytical coverage for Sinarmas MSIG.
The ratings reflect the existence of the market (market presence) Sinarmas MSIG is significant in Indonesia, the healthy operating performance and capitalization strong business profile. The ratio of risk-based capitalization (RBC) Sinarmas MSIG reached 562% at the end of 2012, well above the minimum requirement of 120%. The company continues to face challenges in improving the sustainability premium due to single premium (premium singular) dominate the business portfolio.
Fitch believes that the operational profile Sinarmas MSIG will improve due to a greater focus on regular premium products, rather than products berpremi single.
Propek Stable reflects Fitch’s view that Sinarmas MSIG will continue maintain healthy capitalization to support business expansion and reduce the volatility that may arise from investment results.
With more than 20 years of experience in the life insurance sector in Indonesia, Sinarmas MSIG market dominance will be supported by the market position and franchise as well as the strong support of its affiliates, Sinar Mas Group and Mitsui Sumitomo. Sinarmas MSIG is the second largest life insurance company in Indonesia with market share of 10% at the end of 2012.