First Quarter/2022, Life Insurance Investment Performance Up 347.9 Percent!

The investment performance of the life insurance industry continued to improve by increasing to 347.9 percent in the first quarter of 2022.


The investment performance of the life insurance continues to improve, even growing by hundreds of percent after previously dropping in the Covid-19 pandemic era. 

Based on data from the Indonesian Life Insurance Association (AAJI) as of the first quarter of 2022, investment managed funds reached IDR 545.7 trillion, an increase of 6.8 percent ( year-on-year / yoy) from the previous period of IDR 511.03 trillion.

As a reminder, this managed fund has far improved compared to the pandemic era, where it had fallen to Rp447.9 trillion in the first quarter of 2020, and reached its lowest point of Rp445.2 trillion in mid-2020. In fact, the current value is recorded to be better than the end of 2019 period of IDR 520.5 trillion.

This growth trend also brought positive investment returns at the beginning of this year, reaching IDR 10.81 trillion in the first quarter of 2022, an increase of 347.9 percent yoy compared to the previous period of IDR 2.41 trillion. In comparison, when the life insurance industry began to navigate the pandemic era, investment returns had to start from minus IDR 47.8 trillion in the first quarter of 2020.

"This growth is in line with the increase in the JCI from the level of 5,985.5 to 7,071.4. In addition, it is also encouraged to increase the portion of investment funds placement into state securities [SBN] instruments," said the Head of Regulation, Compliance and Litigation Division of AAJI in a limited discussion. with the media, quoted on Saturday (11/6/2022).

Based on AAJI's records, industrial managed funds that entered the SBN instrument in the first quarter of 2022 reached Rp123.03 trillion, up 37.5 percent yoy from the previous Rp89.48 trillion, and increased rapidly from the first quarter of 2020 worth Rp77.3 trillion. .

Meanwhile, the placement of investment managed funds into capital market instruments actually decreased by 3.2 percent yoy from IDR 316.68 trillion in the first quarter of 2021 to IDR 306.53 trillion in the first quarter of 2022.

Until now, the largest life insurance investment portfolio is still in mutual funds with a share of 29 percent, followed by 27 percent of shares, 23 percent of government securities, 7 percent of corporate sukuk, 6 percent of deposits, and 8 percent of others. 

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