A.M. Best rates GIC Re

A.M. Best has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of "a-" of General Insurance Corporation of India (GIC Re) (India). The outlook for both ratings is stable.

The ratings reflect GIC Re's solid risk-adjusted capitalisation, consistently favorable investment results and its strong presence in the Indian and overseas reinsurance markets.

GIC Re's capital and surplus increased by approximately 10 percent for fiscal year 2012-13, and the company continued to maintain low underwriting leverage and sound liquidity. GIC Re's risk-adjusted capitalisation level remains strong and is supportive of its current rating level.

As the sole domestic reinsurer in India, GIC Re has a good understanding of the Indian non-life insurance market. For the year 2013-14, GIC Re's premium income from the domestic market is expected to drop as a result of the change in obligatory cession to five percent from 10 percent. Nonetheless, this change may not negatively impact GIC Re's underwriting results, as the underwriting performance of the Indian non-life insurance industry is expected to remain unsatisfactory in the near term.