FINANCE PROJECTION TO ACHIEVE STRATEGIC OBJECTIVE: CASE STUDY OF INSURANCE HOLDING COMPANY

• Main Author: Andri, Muhammad
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/85964
• Institution: Institut Teknologi Bandung

Long-term corporate planning is essential for the sustainable growth and success of business, especially within the dynamic and competitive insurance industry. The study aims to assess the feasibility of the company achieving its target net profit goal, based on an analysis of the company’s current and projected financial data, industry analysis, and alignment with the assumptions and strategic initiatives outlined in its long-term plan. The data analysis process involves evaluating the insurance industry, establishing key assumptions, developing financial projections, and constructing a consolidated financial model to evaluate the company’s projected performance from 2025 to 2029. The findings from the financial modeling indicate robust growth in the company’s key financial metrics. The company’s gross written premium (GWP) projected to increase from IDR 37,6 trillion 2024 to IDR 54,5 trillion by 2029 with compound annual growth rate (CAGR) of 8%. This growth is driven by strategic initiatives focused on expanding market presence, particularly in the property and credit insurance lines. Net profit is projected to increase from IDR 3,3 trillion in 2024 to IDR 6,1 trillion in 2029 with CAGR of 13,2%. This increase is attributed to improved operational efficiency. The company’s initiatives to implement best practices and streamline operations are projected to reduce the expense ratio from 20,8% in 2024 to 20,4% by 2029. The findings indicate that the company can feasibly achieve its strategic objective of Rp6,0 trillion in net profit by 2029 through the alignment of assumptions and strategic initiatives outlined in its long-term corporate plan. By aligning strategic initiatives with long-term financial planning, the company is well-positioned to navigate the challenges and opportunities of the future, ensuring success and profitability.