Tugu Insurance Company Limited (Tugu Hong Kong) was established in Hong Kong, December 1965. Initially its main business focus was to insure the oil and gas interest of Pertamina, which is a state owned company in charge of Indonesia's national oil and gas industry and is the ultimate holding company of Tugu Hong Kong.
In four decades since, Tugu Hong Kong provides cover for oil and gas risks of the parent company, and at the same time has grown into one of Hong Kong's large general insurance companies underwriting marine hull, oil and gas, cargo, aviation, contractor all risks, fire, burglary, employees compensation, personal accidents, motor and pecuniary loss etc. in Hong Kong and throughout the Asian Pacific region.
Tugu Hong Kong emphasizes strongly on underwriting discipline to stem the tide of the deteriorating terms of trade and the path taken is proving to be the correct one. It is apparent that the company is reaping the rewards of a selective and risk-commensurate underwriting, where priority is constantly given to profitability over growth in volume of business.
Tugu Hong Kong at the same time maintains adequate reinsurance protection coverage for its insurance portfolio. The company's maximum gross retention for oil and gas risk is US Dollar 3 million and net retention US Dollar 600,000. Three excess-of-loss reinsurance treaties are maintained by Tugu Hong Kong on non-marine business (includes oil and gas), marine and combined liabilities/motor.
Tugu Hong Kong is solidly capitalized with the total capital and reserves in excess of US Dollar 52 million (unaudited) at the end of Year 2009. A.M. Best Co., the world's oldest and most authoritative insurance rating agent has based on the company's Financial strength and assigned a Rating of B++ (Good). The rating reflects the company's strong capital, liquid investment portfolio and relatively short-tail liability exposure. Independent auditors are Deloitte Touche Tohmatsu.
