The performance of insurance companies’ shares listed on the Indonesia Stock Exchange (IDX) is arguably unattractive. Almost all shares of local insurance companies are illiquid or rarely traded by investors even though the growth potential of the domestic insurance industry is seen as very large.
The Financial Services Authority (OJK) said that in 2018, total insurance industry premiums grew by 9%, slower than the 12.9% increase in bank lending. The relatively sluggish growth of the insurance industry makes investors withdraw from the sector, reported CNBC Indonesia.From the beginning of the year until 17 October 2019, which was the period reviewed by CNBC Indonesia, out of 16 insurance companies listed on IDX, nine of them recorded negative returns for investors.
On the other hand, among the 16 listed insurance companies, only one posted net losses for the first half of 2019, namely, AHAP with a net loss of IDR32bn ($2.28m).