TUGU stands out as a leading general insurance player with an integrated ecosystem. Although the company is backed by Pertamina as its controlling shareholder (58.5%), contributions from the parent account for less than 30% of premiums.

Strong fundamentals are underpinned by favorable industry prospects. As one of the largest listed general insurers, TUGU benefits from a capital base that far exceeds OJK’s minimum requirements, with a consistently high RBC ratio of over 300%.

Solid financial performance with attractive dividend potential. TUGU became one of the first general insurers to adopt PSAK 117 in 2025. In the longer run, PSAK 117 will make earnings more predictable and aligned with global benchmarks.

We project EPS growth of 9–11% CAGR over the next four years. Based on this outlook and an assumed payout ratio of 40%, TUGU’s dividend yield could reach 8–10% in the coming years.

Attractive valuation & initiate with a BUY recommendation at Rp1,960/share. Our valuation is based on three approaches: (1) Dividend Discount Model (50% weight), reflecting TUGU’s profile as a dividend play; (2) ROE vs. PBV comparison (25% weight), capturing a fair multiple of book value relative to capital strength and market appetite; and (3) discount to investment portfolio (25% weight).

By PHINTRACO SEKURITAS | Research
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