Company News
Life Insurance Investment Assets Continue to Grow, Most in Mutual Funds.
05 Aug 2021
Company News
Life Insurance Investment Assets Continue to Grow, Most in Mutual Funds.
05 Aug 2021

KONTAN.CO.ID - JAKARTA. In the midst of a volatile capital market due to the high number of Covid-19 cases, investment assets in the life insurance industry continued to grow by 11.66% year-on-year (yoy) in the first half of this year. Mutual fund assets are the largest portfolio of all investment assets in the industry.

The Financial Services Authority (OJK) noted that the investment assets of the life insurance industry reached Rp 492.35 trillion in the first half of this year. For comparison, in the same period last year, life insurance investment assets were recorded at Rp 440.92 trillion.

If you look at the portfolio, assets in mutual funds have the largest portion, contributing 33.39% or Rp 164.39 trillion. These assets also grew 11.61% yoy from the same period last year of Rp 147.29 trillion.

Followed by investment assets in shares which grew 16.29% yoy to Rp 137.88 trillion. Thus, stock assets become the second largest portfolio by contributing 28%

"These two assets have always dominated the last few years with the same position and I don't think there will be any changes going forward," said Executive Director of the Indonesian Life Insurance Association (AAJI) Togar Pasaribu.

Several life insurance companies recorded asset growth. For example, BNI Life, which until July 2021 recorded investment assets of Rp 19.7 trillion or grew 12% yoy.

"The increase in assets is driven by premium receipts and investment returns," said BNI Life Finance Director Eben Eser Nainggolan.

For the investment placement, Eben said, bond assets, including bond mutual funds, contributed quite a lot with a portion of 74%. That means, bond assets in BNI Life reached Rp 14.6 trillion.

According to Eben, the large contribution of bond assets at BNI Life is because the bond market tends to be more stable compared to the current volatile stock market. However, that does not mean that BNI Life does not place investment assets in shares at all.

"We have a little entry into stocks that fall into the IDX 30, LQ45 and Kompas 100 categories," added Eben.

In the future, Eben said, BNI Life will take advantage of the momentum to buy potential IPO shares and reduce money market allocations to maximize investment. Of course, by continuing to be guided by the company's investment strategy policies and regulatory provisions.


Read more: https://keuangan.kontan.co.id/news/asset-investasi-asuransi-jiwa-masih-terus-tumbuh-most-many-di-reksadana?page=2