Despite a bleak macroeconomic picture, Indonesia’s non-life insurance market is well-diversified and underpinned by solid capitalisation, supporting a stable outlook assigned to the segment, according to a new AM Best report.

A new Best’s Market Segment Report, titled, “Market Segment Outlook: Indonesia Non-Life Insurance,” states that the non-life insurance market’s overall robust return on equity, supported by stable historical underwriting performance and strong balance sheet fundamentals, along with good government support including infrastructure plans and economic stimulus, are factors in the stable outlook.

The Indonesia non-life insurance market expanded by 14% year over year, to IDR 79.7 trillion (USD 5.4 billion) in 2019 from IDR 69.9 trillion (USD 4.9 billion) in the previous year, supported mainly by strong growth in credit insurance. Gross premium written (GPW) for credit insurance, the market’s third largest business line, increased by 86.2% to IDR 14.6 trillion in 2019. Property insurance, the largest business segment, also posted solid GPW growth of 9.7% to IDR 20.9 trillion. However, motor insurance GPW recorded muted growth of 0.3%.

AM Best believes that the non-life market in Indonesia benefits from a good business mix that will help to cushion any negative impact from the COVID-19 pandemic. Unlike other markets, which feature motor and health as the largest lines of business, Indonesia’s non-life segment is dominated by property and motor insurance, while credit, personal accident and health lines account for significant portions of total non-life GPW. Collectively, these five lines make up over 80% of the country’s non-life insurance premiums.

However, the decline in economic activity has had a direct impact on the non-life insurance segment. Non-life GPW in the first half of 2020 declined by 6.1% year over year, with the steepest falls in premiums were seen in the property and motor lines of business. Property insurance GPW

HAMBURG (Reuters) – Charges to refine copper concentrate (ore) into metal should remain stable in 2021 as the copper industry has come through the coronavirus crisis well, a senior executive at Aurubis, Europe’s largest copper refiner, told Reuters on Wednesday.

    “Mines are working at high capacity and ever more concentrate is coming onto the market,” said Michael Hellemann, Aurubis’ senior vice president, commercial. “I think we are facing comfortable concentrate supplies in 2021.”

    Treatment and refining charges (TC/RCs), the cost of processing ore, are being discussed in the traditional year-end negotiations.

Miners pay TC/RCs to smelters to process their copper concentrate into refined metal and they are a key part of the earnings of smelters like Aurubis. Charges typically go down when concentrate supply is tight and smelters have to accept lower fees to get feedstock.

    “Overall the copper industry has come through the coronavirus crisis without the disruption seen in other sectors and in 2021 I expect abundant concentrate availability,” said Hellemann.

    “But there are a series of scheduled smelter maintenance shutdowns in 2021 which are expected to remove a significant amount of processing capacity from the market so mines will have to offer attractive TC/RCs to gain smelter capacity.”

    TC/RCs in 2020 are $62 per tonne/6.2 cents per pound, with recent forecasts of a fall to $60 a tonne.

But fourth quarter TC/RCs in China firmed.

    Premiums for copper products in 2021 are also set to be announced in coming weeks. In 2020, Aurubis gave a premium of $96 per tonne above London Metal Exchange (LME) prices.

    “Considering the current copper market situation, I am cautiously optimistic we will see little change in premiums in 2021,” Hellemann said. “The copper market is looking positive with the Chinese economy recovering. Aurubis is retaining its forecast for profits in this