JAKARTA. Indonesian Association of Life Insurance (lit. Asosiasi Asuransi Jiwa Indonesia/AAJI) announces the investment returns of life insurance have scored positively in Q1 2021. It reaches IDR 2.4 trillion, skyrocketing 105.1% year-on-year (yoy).
Simon Imanto, the Head of Tax and Investment Financial Division of AAJI, claims that this period’s returns look better than Q1 2020, in which the pandemic started. AAJI states that the investment returns for life insurance in Q1 2020 had IDR 47.83 trillion loss.
According to Imanto, the gain recorded in Q1 2021 results from the improved investment portfolio. Total assets invested by life insurance companies even grow 14.1% yoy in Q1 2021. “It is because there is an increment in new invested premium and an improvement in market value in Q1 2021,” Imanto further explains in a press conference earlier today (8/6).
Furthermore, 33.5% of the invested assets are placed in mutual funds. Another 27.5% are invested through government bonds, while the other 17.5% through stocks.
Additionally, Budi Tampubolon, the President of AAJI, mentions that the three instruments above are believed to keep dominating the insurance companies’ investment portfolios. “In the short run, or until the end of the year, there might be no change in the direction of investment,” Tampubolon asserts. (KR/ZH)