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Jul 2018

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Indonesia: Life insurers favour stocks and mutual funds in investment

Source: Asia Insurance Review | Jul 2018

Indonesia Investment Management Financial Performance

Stock and mutual funds will still be the main investment choice of life insurers, with the Indonesian Life Insurance Association (AAJI) optimistic that both instruments will perform well this year. 
 
The share of investments in stocks by life insurers stood at 30.4% while that for mutual funds was 35% in the first quarter of the year, reports Kontan.
 
AAJI chairman Hendrisman Rahim conceded, however, that during 1Q2018, life insurance investment results were below expectations. This was because the composite stock price index (IHSG) declined during the quarter. 
 
AAJI data show that for 1Q2018, the life sector posted a loss of IDR2.86tn ($205m), compared to a gain of IDR11.8tn for the corresponding quarter in 2017.
 
However, Mr Hendrisman predicted that the investment climate would continue to improve before the end of the year. 
“Our expectation are that the IHSG will be more stable, so that investment allocation will be shift further from deposits to mutual funds and stocks,” he said. A 
 
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