Prudential Indonesia Records 44.4% Net Profit Growth Amidst High Medical Inflation
The financial burden from insurance contracts jumped to Rp 4.25 trillion, significantly higher than Rp 1.41 trillion in 2024.
By Aguido Adri
03 Jun 2026 17:50 WIB · English
JAKARTA, KOMPAS — The high medical inflation and the increasing risk of critical illnesses continue to overshadow the health insurance industry. However, PT Prudential Life Assurance (Prudential Indonesia) managed to record a net profit of Rp 2.4 trillion in 2025, an increase of 44.4 percent compared to the previous year.
Chief Financial Officer of Prudential Indonesia, Adit Trivedi, in a performance report for the year 2025 in Jakarta, Wednesday (3/6/2026), explained that Prudential Indonesia recorded total assets of Rp 64.3 trillion, growing by 10.7 percent from Rp 58.03 trillion in 2024. Prudential also generated premium income of Rp 21.1 trillion throughout 2025.
In addition, a net profit of Rp 2.4 trillion was recorded for the fiscal year 2025. This net profit represents a 44.4 percent increase compared to the previous year, which was Rp 1.70 trillion.
The improvement in performance is supported by the growth of net insurance service results amounting to Rp 1.93 trillion, up from Rp 1.83 trillion in the previous year. In addition, the company recorded realized and unrealized investment gains of Rp 3.23 trillion, reversing from an investment loss of Rp 869.8 billion in 2024.
In terms of financial health, the company’s solvency ratio, or risk-based capital (RBC), reached 466 percent, well above the minimum requirement set by the Financial Services Authority (OJK). The company’s solvency level was recorded at IDR 4.79 trillion, with excess capital exceeding the minimum risk-based requirement of IDR 3.76 trillion.
President Director of Prudential Indonesia, Tony Benitez, stated that this achievement demonstrates the company’s ability to maintain performance while also preserving the relevance of its services amidst changing community needs and the continuously evolving dynamics of the industry.
“Market volatility and global macroeconomic conditions affect investment values, while rising medical inflation and pressure on public purchasing power continue to pose challenges for the industry. We remain focused on strengthening our role as a trusted partner in building the resilience of Indonesian families,” said Tony.
According to Tony, the company continues to expand access to protection through the development of more inclusive, affordable products that meet the needs of the community at various stages of life.
Nevertheless, Prudential continues to face challenges from the insurance obligation side. The financial burden from insurance contracts surged to Rp 4.25 trillion, significantly higher than Rp 1.41 trillion in 2024. However, this increase was able to be offset by improvements in investment results and an increase in insurance service income.
Amid various challenges, the company continues to perform its protective function as the core of its business. Throughout 2025, Prudential Indonesia paid out claims and benefits amounting to Rp 16 trillion to its customers.
Amid the growing need for healthcare protection, the health insurance segment has become a key driver of Prudential’s business. By 2025, health insurance products will account for approximately 28 percent of the company’s total gross written premium (GWP). The majority of new customers also come through health products.
“The contribution of health insurance is very significant. Approximately 28 percent of our total GWP comes from health insurance, and the majority of new customers enter through this product,” said Chief Health Officer of Prudential Indonesia, Yosie William Iroth.
The potential increase in health claims in 2026, in line with the trend of medical inflation, is expected to remain at a high level. Nevertheless, Prudential claims to have successfully restrained the rate of increase in health claims throughout 2025 to only 3 percent, significantly below the medical inflation rate, which reaches approximately 17 percent.
Yosie stated that the increase in health claims is a phenomenon experienced by almost all insurance companies in line with the rising costs of healthcare services and changes in the risk profile of the community.
“All insurance companies certainly experience an increase in claims. Prudential also experienced an increase, but in 2025, the rise is only about 3 percent, while medical inflation reaches around 17 percent,” said Yosie.
According to Yosie, the continuously rising healthcare costs are driven by advancements in health technology, the use of increasingly sophisticated medications, and changes in lifestyle patterns that affect disease risk.
For 2026, medical inflation is still projected to be in the range of 17-18 percent. This condition has the potential to add pressure on the health insurance industry if not balanced with effective claims management strategies.
Yosie added that Prudential will continue various control measures that have been implemented over the past few years, including expanding its network of partner hospitals, strengthening medical supervision, and utilizing artificial intelligence (AI) to monitor claim patterns that could potentially lead to overutilization of healthcare services.
By the end of 2025, Prudential will have more than 1,700 hospitals in the PRUPriority Hospitals network. In addition, the company has established a Medical Advisory Board to support a more objective and transparent claims evaluation.
“Our goal is not to reject claims. Policyholders have already paid their premiums. What we are doing is ensuring that there is no abuse so that the benefits of protection remain sustainable and affordable for all policyholders,” said Yosie.
In addition to claims management, premium adjustments are also one of the instruments used by the insurance industry to offset the rising health risks. According to Yosie, premium increases are a common practice carried out annually in line with the aging o