Broker Name: UOB Kay Hian
Date of Report: Thursday, 12 March 2026
Excerpt from UOB Kay Hian report.
- Report Summary
- Asuransi Tugu Pratama Indonesia (TUGU), an AM Best A- rated and IDX-listed SOE general insurer, is deeply undervalued, trading at around 0.45x trailing P/B despite solid capital strength, a healthy balance sheet, and strong dividend yield.
- Upcoming regulations (POJK 23) will increase capital requirements for insurers, likely driving industry consolidation. TUGU, with significant scale and strong capital, is well positioned to benefit, especially from SOE insurer restructuring plans led by Danantara.
- TUGU’s market cap is well below its book value, and the company enjoys a steady dividend (6-7% yield), but faces modest ROE due to conservative investment allocations in government bonds and deposits.
- The company is a market leader in corporate insurance, especially in oil & gas, marine, and property, with Pertamina as a key client and plans to expand its retail business for further growth and diversification.
- Historical consolidation in Indonesia’s SOE banking sector led to major valuation reratings, suggesting TUGU could see similar re-rating if used as a consolidation platform for SOE insurers.
- Indonesia’s rising oil and gas investment is expected to further boost insurance demand, positioning TUGU for continued growth as the lead insurer for major state-backed projects.
Above is an excerpt from a report by UOB Kay Hian. Clients of UOB Kay Hian can be the first to access the full report from the UOB Kay Hian website: https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc
