Zurich Indonesia Maintains Government Bond Investment Strategy - Babel Insight

Zurich Indonesia’s investment policy remains consistent despite the government officially increasing the maximum stock investment limit for insurance and pension industries from 8% to 20%. The insurance company has chosen to maintain a cautious asset management approach.

Zurich Indonesia, which oversees PT Zurich Asuransi Indonesia Tbk, PT Zurich General Takaful Indonesia, and PT Zurich Topas Life, is committed to aligning investments with their liability profiles.

Managing Director of PT Zurich General Takaful Indonesia (Zurich Syariah), Hilman Simanjuntak, explained that the company’s primary focus is managing investment assets to meet long-term obligations effectively.

‘We are focused on carefully managing our investment assets and aligning them with our liability profile,’ he said.

According to Hilman, government bonds are the most suitable instrument for this strategy to maintain liquidity and liability profiles.

‘At present, the most appropriate investment instrument for Zurich’s policy and strategy is government bonds,’ he added.

Hilman noted that the increased stock investment limit of up to 20% will not alter Zurich Indonesia’s approach to maintaining solvency.

‘We will continue to focus on using investments to safeguard our solvency and liabilities. While we may increase investments where possible, risk management remains paramount in carefully managing our investment assets,’ he said.

The majority of the company’s investment assets are allocated to long-term and liquid instruments.

‘Most of our investment assets are in government bonds, with liquidity managed through time deposits,’ Hilman added.

Similar views were expressed by Fred Chan, Director of PT Zurich Topas Life (Zurich Life), regarding life insurance fund management.

‘Most of our investments will be in government and corporate bonds to manage long-term profiles and ensure profit management,’ he said.