The outlook for both ratings is stable.
The ratings reflect New India's strong risk-adjusted capitalization, improved underwriting performance and its prominent business profile in the Indian insurance market.
Both New India's underwriting performance and its loss ratio improved in fiscal year 2011-2012, with the loss ratio improving to 91 percent from 101 percent in fiscal 2010-2011. These improvements are a result of the company's corrected pricing and revised policy terms through coordination with other major players on pricing controls for large group policies. Overall, New India's combined ratio was lowered by 13 percent to 125 percent in fiscal year 2011- 2012.
Offsetting rating factors are the competitive non-life insurance market in
Negative rating actions could occur if there is a significant deterioration in New India's operating results or the company's risk- adjusted capitalization declines to a level below
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