A.M. Best Comments on Credit Ratings of General Insurance Corporation of India

SINGAPORE--(BUSINESS WIRE)-- A.M. Best has commented that the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of General Insurance Corporation of India (GIC Re) (India) remain unchanged. This comment on the company’s Credit Ratings (ratings) follows GIC Re’s recently published audited financial results for the year ending March 2017, which saw an 82% increase in gross premiums. This was considerably higher than the company’s projections.

Most of the premium growth stemmed from the implementation of a new crop insurance scheme, Pradhan Mantri Fasal Bima Yojana, which is heavily subsidized by the government. As an Indian reinsurer, GIC Re enjoys priority offers in reinsurance placement in India. The company also has decided to retain most of the risks pertaining to the crop insurance scheme.

Although GIC Re’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), has declined due to rapid growth in business volume, it remains supportive of the rating level. Nonetheless, the company’s risk-adjusted capitalization could be affected adversely by large underwriting losses or negative movements in its investment portfolio.

A.M. Best will continue to track GIC Re’s premium and capital growth. Any material changes to GIC Re’s balance sheet strength will be reviewed to assess any impact on the company’s ratings.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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A.M. Best

Wesley Chia

Associate Financial Analyst

+65 6589 8400, ext. 213

[email protected]

or

Chi-Yeung Lok

Associate Director, Analytics

+65 6589 8400, ext. 211

[email protected]

or

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

[email protected]

or

Jim Peavy

Director, Public Relations

+1 908 439 2200, ext. 5644

[email protected]

Source: A.M. Best