NE BUSINESS BUREAU
MUMBAI, NOV 2
General Insurance Corporation of India (GIC Re), a prominent global reinsurer, on Thursday announced it has received a significant acknowledgment from AM Best, a renowned credit rating agency. AM Best has revised its outlook to positive from stable for GIC Re’s Financial Strength Rating (FSR) and to positive from negative for the Long-Term Issuer Credit Rating (Long-Term ICR). These revisions come alongside the affirmation of GIC Re’s FSR of B++ (Good) and Long-Term ICR of “bbb+” (Good), highlighting the corporation’s robust financial standing.
- These revisions come alongside the affirmation of GIC Re’s FSR of B++ (Good) and Long-Term ICR of “bbb+” (Good), highlighting the corporation’s robust financial standing
- We are pleased with AM Best’s revised outlooks and the exceptional NSR assigned to GIC Re: Ramaswamy N, Chairman and Managing Director of GIC Re
- The company’s shareholders’ equity surged by 74% to Rs 675 billion (USD 8.2 billion) in fiscal year 2023
Moreover, AM Best has assigned GIC Re an India National Scale Rating (NSR) of aaa.IN (Exceptional) with a stable outlook, underlining the company’s exceptional performance within the Indian market.
The Credit ratings reflect GIC Re’s sturdy balance sheet strength marked by strong risk-adjusted capitalization, appropriate Enterprise Risk Management (ERM) and regulatory solvency position, which have consistently improved over the past three years. The company’s shareholders’ equity surged by 74% to Rs 675 billion (USD 8.2 billion) in fiscal year 2023, driven by gains in the investment portfolio and increased retained earnings.
Ramaswamy N, Chairman and Managing Director of GIC Re, expressed his enthusiasm about the ratings, stating, “We are pleased with AM Best’s revised outlooks and the exceptional NSR assigned to GIC Re. These acknowledgments underscore our commitment to maintaining a robust balance sheet and enhancing our enterprise risk management strategies.”
Recognized as the 16th-largest reinsurer globally based on gross premium written, GIC Re enjoys a favorable business profile, dominating the Indian reinsurance landscape with a market share averaging between 60-70%. The company benefits from mandatory domestic reinsurance cessions and a right of first refusal, providing preferential access to domestic reinsurance placements. Ramaswamy N further added, “GIC Re’s favorable business profile and robust performance in the Indian market demonstrate our commitment to providing quality services and maintaining a leading position in the global reinsurance industry.”
GIC Re’s diversified underwriting portfolio across various lines of business and geographical areas continues to be a cornerstone of its strength and stability.
