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Fundamental Analysis of PT Asuransi Ramayana Tbk (ASRM) Stock

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Fundamental Analysis of PT Asuransi Ramayana Tbk (ASRM) Stock

worldreview1989 - PT Asuransi Ramayana Tbk (ASRM) is an Indonesian general insurance company listed on the Indonesia Stock Exchange (IDX). A fundamental analysis of its stock involves scrutinizing its financial health, business model, industry outlook, and management effectiveness to determine its intrinsic value.

Fundamental Analysis of PT Asuransi Ramayana Tbk (ASRM) Stock
Fundamental Analysis of PT Asuransi Ramayana Tbk (ASRM) Stock


I. Business Overview and Industry Context

PT Asuransi Ramayana Tbk operates in the general insurance sector, providing various insurance products such as fire, motor vehicle, marine cargo, engineering, and other miscellaneous insurance services.

Industry Environment

The Indonesian insurance sector, particularly the general insurance segment, is influenced by the nation's economic growth, regulatory environment, and public awareness of risk mitigation.

  • Economic Sensitivity: General insurance premiums often correlate with economic activity; as industries and infrastructure develop, the demand for non-life insurance rises.

  • Competition: ASRM faces competition from numerous domestic and foreign general insurance companies. Its ability to maintain competitive pricing, efficient claims processing, and a strong distribution network is crucial.

  • Regulatory Framework: The company's operations are heavily regulated by the Financial Services Authority (OJK) in Indonesia, impacting solvency requirements (like Risk-Based Capital/RBC), premium setting, and investment allocation. Maintaining a strong RBC ratio significantly above the minimum threshold is vital for an insurance company.

II. Financial Performance Analysis

Analyzing ASRM's financial statements over several years provides insight into its stability, profitability, and efficiency.

A. Profitability and Growth

Key metrics for an insurance company include revenue growth (gross premiums written), underwriting income, and net income.

YearRevenue (IDR Billion)Net Profit (IDR Billion)Net Profit Margin (NPM)Earnings Per Share (EPS) (IDR)
20211,662.7164.963.91%213
20222,060.1686.494.20%284
20231,663.82 / 1,961.66*20.75 / 88.79*1.25% / 4.53%*68 / 73*
20241,406.18**32.4***2.0%***27.03***

*Note: 2023 financial data shows discrepancies in reports (possibly unaudited vs. audited or full year vs. partial). Using the higher Net Profit and corresponding EPS (IDR 88.79 billion / IDR 73) provides a more comparative figure, but the lower reported figures (IDR 20.75 billion / IDR 68) for the same year should be noted as a significant drop.

**2024 Revenue is a partial year figure (e.g., Q1/Q2) - use with caution.

***2024 Net Profit and EPS are full year figures according to one source, indicating a sharp drop in profitability compared to 2023's reported high.

  • Revenue Trend: ASRM experienced significant revenue growth from 2021 to 2022, reaching over IDR 2 trillion. However, the reported revenue for 2023 and 2024 suggests a decline or fluctuation, warranting further investigation into the cause (e.g., portfolio mix changes, competition, or premium restructuring).

  • Net Profit & Margin: Net Profit and Net Profit Margin (NPM) have been volatile. The sharp drop in the NPM (to as low as 1.25% in one 2023 report, and 2.0% in the 2024 full-year report) indicates potential challenges in managing claims or operating expenses, or adverse investment outcomes. Investors should analyze the underwriting ratio and combined ratio to better understand the core insurance business profitability.

  • Earnings Per Share (EPS): The EPS generally follows the Net Profit trend, showing strong growth in 2022 but a concerning sharp decrease in 2024 (IDR 27.03), suggesting a significant reduction in per-share earnings power.

B. Balance Sheet Health (Liquidity and Solvency)

Insurance companies need strong capital bases to meet future claims.

  • Assets and Investments: The company's assets, which totaled approximately IDR 1.6 to 1.8 trillion in recent years, largely consist of investments (time deposits, equity and debt securities, investment properties) and reinsurance contract assets. The quality and diversification of these investments are critical, as they contribute significantly to overall income.

  • Debt-to-Equity (D/E) Ratio: The reported D/E ratio of approximately 26.7% suggests that the company is not overly reliant on debt financing compared to its equity, which is generally positive. However, for a financial institution, regulatory solvency ratios like RBC are more important than the D/E ratio.

  • Reinsurance Assets: A significant portion of assets is related to reinsurance. A strong reinsurance structure helps manage large risks and stabilize profitability, but the quality of the reinsurers is also important.

III. Valuation Metrics

Valuation ratios help determine if the stock is priced appropriately relative to its financial performance and book value.

A. Price-to-Earnings (P/E) Ratio

The P/E ratio measures the price paid for every dollar of earnings.

  • ASRM's P/E ratio is reported to be around 9.7x to 24.07x (as of October 2025).

  • Compared to a reported industry average of 11.6x, a P/E of 9.7x might suggest the stock is slightly undervalued relative to its peers. However, a P/E of 24.07x suggests it is overvalued. The disparity in P/E often stems from which EPS figure (historical or TTM/trailing twelve months) is used.

  • Given the volatile Net Profit and low reported EPS for 2024 (IDR 27.03), a high P/E of 24.07x would be based on the latest low earnings, indicating the market may be pricing in a recovery or anticipating higher future earnings than the latest reports suggest.

B. Price-to-Book (P/B) Ratio

The P/B ratio compares the current stock price to the book value per share.

  • ASRM's P/B ratio is approximately 0.9x.

  • A P/B ratio less than 1.0x is often considered a sign that the stock may be undervalued, trading below its net asset value. Compared to the industry average of 0.9x and the sector average of 1.0x, ASRM appears reasonably valued or slightly undervalued based on book value.

C. Dividend Policy and Yield

ASRM has a history of paying dividends.

  • The last reported dividend per share was IDR 65.00.

  • The TTM Dividend Yield is approximately 4.19% (based on a recent stock price).

  • This dividend yield is attractive and suggests the company is committed to returning value to shareholders. However, investors must confirm if the dividend is sustainably covered by Free Cash Flow and net earnings. One analysis suggests the dividend is "not well covered by free cash flows," which is a risk factor.

IV. Management and Ownership

Management stability and insider ownership are positive indicators.

  • CEO Tenure: The CEO has a very long tenure (over 17 years), suggesting stable leadership.

  • Management Ownership: The CEO directly owns a significant portion of the company's shares (over 31.5%), indicating a strong alignment of interest between management and shareholders. This high insider ownership is a notable positive factor.

V. Conclusion and Investment Outlook

The fundamental analysis of PT Asuransi Ramayana Tbk (ASRM) reveals a complex investment profile:

Positive FactorsNegative/Risk Factors
$\checkmark$ High Insider Ownership (Strong alignment with shareholders).$\times$ Volatile and Declining Profitability (Sharp drop in Net Profit and EPS in 2024).
$\checkmark$ Reasonable P/B Ratio (Trading near or slightly below book value).$\times$ Revenue Fluctuations (Inconsistent growth in recent years).
$\checkmark$ Attractive Dividend Yield (Commitment to shareholder returns).$\times$ Dividend Coverage Risk (Reportedly not well-covered by free cash flow).
$\checkmark$ Stable, Long-Tenured Management.$\times$ Highly Competitive Industry.

The company's valuation, based on its P/B ratio and dividend yield, appears attractive. However, the concerning decline and volatility in its earnings and profitability metrics (EPS and Net Profit Margin) present a significant risk.

Investment Recommendation: Investors should exercise caution. ASRM may be suitable for a value-oriented investor who believes the drop in profitability is a temporary issue and that management, given its long tenure and high ownership stake, can execute a successful turnaround. However, an investment requires a deeper dive into the reasons for the recent drop in net income and confirmation of the company's RBC ratio and underwriting profitability to assess the sustainability of its core business and dividend payments.

About the Author


David Mulyana is the founder and editor of WorldReview1989, an independent publication dedicated to finance, investing, insurance, business, technology, and digital marketing.

He researches and writes in-depth articles that help readers understand complex financial topics through clear explanations, practical insights, and data-driven analysis. His editorial focus includes stock market investing, cryptocurrencies, banking, personal finance, business insurance, real estate, startup strategies, and emerging technology trends.

Every article published on WorldReview1989 is created with a commitment to accuracy, transparency, and reader value. Content is reviewed regularly to reflect the latest market developments, industry updates, and publicly available information from trusted sources.

Editorial Principles

- Accuracy before speed
- Independent and unbiased analysis
- Clear, easy-to-understand explanations
- Information supported by reputable public sources
- Regular updates to maintain content relevance

Areas of Expertise

- Personal Finance
- Investing & Stock Market
- Cryptocurrency & Blockchain
- Insurance
- Banking
- Real Estate
- Business & Entrepreneurship
- Digital Marketing
- Financial Technology (FinTech)

About WorldReview1989

WorldReview1989 provides educational content for readers seeking reliable information about finance, investment opportunities, insurance, business strategies, and technology. The website aims to simplify complex financial concepts and empower readers to make informed decisions.

Disclaimer: The information published on WorldReview1989 is for educational and informational purposes only. It should not be considered financial, legal, tax, or investment advice. Readers should consult qualified professionals before making financial decisions.

David Mulyana  writes about stocks, financial markets, investment strategies, insurance and emerging-market opportunities, with a focus on helping readers understand financial data and investment risks.

Investment Disclaimer

This article is for educational and informational purposes only and should not be considered personalized investment, tax or financial advice. Australian stocks can be volatile and involve currency, market, commodity, regulatory and geopolitical risks. Past performance does not guarantee future results. U.S. investors should conduct their own due diligence and consult a qualified financial or tax professional before investing.

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