The ratings reflect GIC Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management. In addition, the ratings factor in a neutral impact from the company’s ownership by the government of India.
Singapore: International rating agency AM Best has affirmed the Financial Strength Rating of A- (Excellent), the Long-Term Issuer Credit Rating of “a-” (Excellent) and the National Scale Rating of aaa.IN (Exceptional) of state owned GIC Re, the largest reinsurer in Indian market.
The outlook of these Credit Ratings (ratings) is stable.
The company is the 10th largest non-IFRS 17 reinsurer globally, according to AM Best’s most recent annual ranking of the top 50 global reinsurers.
The ratings reflect GIC Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management. In addition, the ratings factor in a neutral impact from the company’s ownership by the government of India.
GIC Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level as at fiscal year-end (31 March) 2026, as measured by Best’s Capital Adequacy Ratio (BCAR).
GIC Re has adopted prudent capital management that supports its appropriate regulatory solvency position, and is expected to maintain its risk-adjusted capitalisation at the strongest level over the medium term.
A partially offsetting balance sheet strength factor is the company’s exposure to market risk, given its relatively high allocation to domestic equity investments in India.
AM Best views GIC Re’s operating performance as adequate, supported by a five-year average return-on-equity (ROE) ratio of 9.5% (FY 2022-2026).
In fiscal year 2026, GIC Re reported an ROE ratio of 11.5% based on consolidated profits, although its underwriting performance remained unprofitable with an elevated combined ratio. Investment income, including realised gains on equity investments, is a key contributor of overall earnings and historically has made up for the lack of technical profits.
AM Best assesses GIC Re’s business profile as favourable.The company benefits from mandatory domestic reinsurance cessions of 4%, and also a right of first refusal that provides it with preferential access to domestic reinsurance placements.
The company’s underwriting portfolio is generally well-diversified by lines of business and geography.