Q. What strategic measures has the company taken to maintain stability going forward?
When considering the pathway to the sustainability and the stability of an insurance company, We can identify two key aspects namely through underwriting and through investments. In this context, the finance team is keen on the sustainability of the organization in terms of investment activities while other front-line departments such as administration, life operational departments are keen on operational strategic initiatives.
Financial stability has become the focus of attention during this global crisis. Capital requirement is a key element in measuring the stability of a company. Capital adequacy is the key element that we focus on in this crucial period. Strategies have been developed to maintain the adequate CAR and TAC with a buffer to the minimum regulatory requirement. It is very difficult to predict the future of sudden climate changes such as the Covid 19 pandemic. We have managed to face this pandemic with minimum negative impact even without prior preparation.
With this experience, we now focus more on changing our investment strategies while maintaining regulatory requirements. However, we still use two different investment strategies as liability-driven investment strategies (LDI) and growth-driven investment strategies (GDI).
Our Growth strategies involve equities, higher-yield debt, and even non-liquid alternative assets such as private equity, infrastructure, and real estate. The aim is to grow the value of invested assets over the long term to fund future liability needs.