FINANCE PROJECTION TO ACHIEVE STRATEGIC OBJECTIVE: CASE STUDY OF INSURANCE HOLDING COMPANY FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By MUHAMMAD A NDRI Student ID: 29122427 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG September 2024 ii ABSTRACT FINANCE PROJECTION TO ACHIEVE STRATEGIC OBJECTIVE: CASE STUDY OF INSURANCE HOLDING COMPANY By Muhammad Andri Student ID: 29122427 (Master of Business Administration Program) 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. Keywords: Financial Projection, Financial Modeling, Insurance Company, Corporate Long-Term Planning. iii ABSTRAK PROYEKSI KEUANGAN UNTUK MENCAPAI TUJUAN STRATEGIS: STUDI KASUS PERUSAHAAN HOLDING ASURANSI Oleh Muhammad Andri 29122427 (Program Studi Magister Administrasi Bisnis) Rencana jangka panjang perusahaan sangat penting untuk pertumbuhan yang berkelanjutan dan keberhasilan bisnis, terutama dalam industri asuransi yang dinamis dan kompetitif. Studi ini bertujuan untuk menilai kelayakan perusahaan dalam mencapai target laba bersih, berdasarkan analisis data keuangan saat ini dan yang diproyeksikan, analisis industri, serta keselarasan dengan asumsi dan inisiatif strategis yang diuraikan dalam rencana jangka panjang perusahaan. Proses analisis data melibatkan evaluasi industri asuransi, penetapan asumsi kunci, pengembangan proyeksi keuangan, dan penyusunan model keuangan konsolidasi untuk mengevaluasi kinerja yang diproyeksikan perusahaan dari tahun 2025 hingga 2029. Hasil dari model keuangan menunjukkan pertumbuhan yang kuat dalam metrik keuangan utama perusahaan. Premi Bruto (Gross Written Premium/GWP) perusahaan diproyeksikan meningkat dari IDR 37,6 triliun pada tahun 2024 menjadi IDR 54,5 triliun pada tahun 2029 dengan tingkat pertumbuhan tahunan (Compound Annual Growth Rate/CAGR) sebesar 8%. Pertumbuhan ini didorong oleh inisiatif strategis yang difokuskan pada expanding market presence, terutama dalam lini bisnis asuransi properti dan kredit. Laba bersih diproyeksikan meningkat dari IDR 3,3 triliun pada tahun 2024 menjadi IDR 6,1 triliun pada tahun 2029 dengan CAGR sebesar 13,2%. Peningkatan ini dikaitkan dengan efisiensi operasional yang lebih baik.