Indonesian Life Insurance Investment Returns Surge 25.5% in Q3 2025

Significant Growth in Investment Returns

The Indonesian Life Insurance Association (AAJI) has reported a significant 25.5% Year-on-Year (YoY) increase in investment returns for the life insurance industry, with total investments reaching Rp 33.81 trillion by the end of Q3 2025. This substantial growth reflects positive developments in Indonesia's financial markets during the period.

Key Drivers of Investment Growth

AAJI Executive Director Emira Oepangat attributed the improved investment performance to several key factors in the financial market. The strengthening of the Indonesian Composite Stock Price Index (IHSG) played a crucial role, as it positively impacted investment portfolios allocated to capital market instruments. Additionally, the performance of Government Securities (SBN) contributed to the overall growth in investment returns.

Market Context and Future Outlook

The positive performance in the life insurance industry's investment returns during Q3 2025 indicates a robust financial environment in Indonesia. As the capital markets showed resilience and growth, insurance companies were able to benefit from their investments in various financial instruments. This trend suggests a favorable outlook for the industry's investment performance in the near term, assuming continued stability in the financial markets.