Fitch Raises Credit Rating of Hanwha Life Insurance’s Indonesian Acquisition, Lippo General Insurance, to Top-Tier 'AAA'

【JAKARTA, Indonesia=Aulia Maulida Hamdani, Correspondent】Global credit rating agency Fitch Ratings has upgraded the credit rating of PT Lippo General Insurance Tbk (LGI), acquired by Hanwha Life Insurance, to the highest level of 'AAA'.
According to local media reports on the 7th, Fitch said in a report released on the 4th that it had raised LGI’s Insurer Financial Strength (IFS) rating by one notch, from 'AA+' to 'AAA', while maintaining a 'Stable' outlook. The key reason for the upgrade was that LGI’s strategic importance within South Korea’s Hanwha Life Insurance had risen from 'Important' to 'Very Important'.
Fitch viewed positively the continued ownership relationship and group ties since Hanwha Life Insurance acquired a controlling stake in LGI in March 2023. It also judged that LGI was unlikely to be sold, particularly because Hanwha Group is expanding its insurance business beyond South Korea and regards Indonesia as a key hub in emerging Asian markets.
Fitch assessed that "Indonesia is a key market in the group’s emerging Asian markets." LGI’s standalone business competitiveness and profitability also supported the rating. Fitch rated LGI’s business profile as 'Strong', and the company held approximately 3% of Indonesia’s insurance market as of June 2026. Its main businesses are health insurance and credit insurance covering short-term loans. Under Indonesian insurance accounting standards, net profit rose sharply to 145 billion rupiah (approximately 11 billion won) in 2025 from 64 billion rupiah (approximately 4.9 billion won) a year earlier. Its return on equity (ROE) was 15% during the same period.
LGI also maintained a stable level of capital adequacy. Its risk-based capital (RBC) ratio stood at 244% at the end of June 2026, down from 304% at the end of last year but well above the financial authorities’ minimum requirement of 120%. Consolidated equity was 1.028 trillion rupiah (approximately 78.4 billion won), exceeding both the minimum capital requirement of 250 billion rupiah (approximately 19 billion won) for 2026 and the requirement of 1 trillion rupiah (approximately 76.3 billion won) for 2028.
Meanwhile, there is no room for a further upgrade because LGI’s final rating is already at the highest level under Fitch’s Indonesian sovereign rating scale. Fitch explained that the rating could be downgraded if LGI’s strategic importance within Hanwha Life Insurance weakens or if its standalone credit profile, including capital adequacy, deteriorates significantly.
[email protected] Aulia Maulida Hamdani, Correspondent Reporter