Tune Ins purchase of Indonesian insurer good move, says RAM Ratings

KUALA LUMPUR: Tune Ins Holdings Bhd's (TIH) proposal to buy 50%-plus-one-share of Indonesian insurer, PT Asuransi Staco Mandiri will not impact its A1/Stable/P1 ratings, according to RAM Ratings.

The ratings agency said on Thursday the proposed RMM22.8mil acquisition would be funded internally via its initial public offering proceeds.

It added that as at 2014, the company was debt-free with cash and deposits of over RM400mil.

Hence, RAM Ratings believed the acquisition was positive and would help the company  to penetrate into the travel insurance market which accounts for about 8% of TIH’s gross written premiums from travel insurance.

Currently, TIH’s local insurance partner underwrites travel insurance in Indonesia.