Fitch Ratings on Thursday announced it has assigned Indonesia’s PT Asuransi Candi Utama (Candi) a first-time National Insurer Financial Strength (IFS) Rating of ‘A-(idn)’, with a stable outlook.
The company was set up in 2018 and began commercial operations in 2020, and had a 0.3% share of gross premiums written in the Indonesian non-life market in 2024.
Its main business lines are fire insurance, which made up 52% of total gross premiums written in the first nine months of 2025, marine hull (19%), and engineering (9%). The company sourced 80% of its gross premiums written from brokers.
In its ratings assessment, Fitch noted that the insurer’s underwriting was volatile during its start-up phase; however, its operating performance has now improved.
Candi’s combined ratio was 97% in 2025, compared to 104% in 2024, due to higher reinsurance commissions. The business’s three-year average combined ratio for 2023-2025 was 97%. Its return on equity for the same period was 7%.
The company cedes a large share of its premiums to reinsurers due to its small scale and high exposure to catastrophe risk in Indonesia. The premium retention ratio averaged 36% over 2023-2025, low compared to the non-life industry average of 60%. Candi’s exposure to reinsurance recoverables relative to its capital base rose to 113% at end-2025, up from 96% at end-2024. “The high reinsurance recoverables ratio may increase the company’s credit risk in light of the weak credit quality of its domestic reinsurance panel,” Fitch said.
Candi reported a regulatory risk-based capital (RBC) ratio of 392% at end-2025, down from 412% at end-2024, driven by higher premium growth. However, the 2025 figure remains well above the industry average of above 300% and the 120% minimum regulatory requirement.
Fitch notes that Candi has a conservative and liquid investment portfolio. 56% of total invested assets are allocated to fixed-income securities, cash and time deposits, followed by mutual funds at 44%. “Exposure to risky assets is kept at a manageable level relative to equity,” Fitch said.
Total equity stood at 268bn rupiah (US$15.7m) at end-2025, exceeding the 250bn rupiah (approx US$15.7m) minimum equity requirement set for end-2026. However, the company estimates total equity will fall below this requirement under the new accounting standard, PSAK 117. Nonetheless, Candi aims to comply with the requirement through surplus growth by the end of the year.
