The Credit Ratings (ratings) reflect GIC Re’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management (ERM). In addition, the ratings factor in a neutral impact from the company’s ultimate majority ownership by the government of India
SINGAPORE:
AM Best has revised the Long-Term Issuer Credit Rating (Long-Term ICR) outlook to negative from stable and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term ICR of “bbb+” (Good) of General Insurance Corporation of India (GIC Re) (India).
The outlook of the FSR is stable.
The Credit Ratings (ratings) reflect GIC Re’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management (ERM). In addition, the ratings factor in a neutral impact from the company’s ultimate majority ownership by the government of India.
The revision of the Long-Term ICR outlook to negative from stable reflects AM Best’s view of increasing pressure on GIC’s Re’s ERM assessment.
In fiscal year 2022, the company’s financial accounts have been subject to a qualified audit opinion in respect of the reconciliation of receivables and payables, indicating deficiencies in internal financial controls.
In addition, whilst management has taken action to strengthen the company’s ERM framework over recent years, the company’s risk culture and governance are viewed to be evolving at this stage.