The alleged IDR54bn (US$3.04m) investment fraud and payroll-related embezzlement could lead to further losses, weighing on the insurer's capital and profitability.
The Indonesian reinsurer's risk-based capital ratio fell to 163% at end-2025 from 228% a year earlier, with Fitch also assigning a negative outlook following the ratings downgrade.
Despite logging a five-year average weighted 93.9% COR, AM Best downgrades ratings due to heightened economic, political, and financial system risks in Pakistan.