A.M. Best Affirms Ratings of Life Insurance Corporation (International) B.S.C. (C).OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating of B++(Good) and the issuer credit rating of "bbb+" of Life Insurance Corporation (International) B.S.C. (C) (LIC LIC Low Intensity Conflict LIC License LIC Licenciado (Spanish) LIC Long Island City LIC Life Insurance Corporation of India LIC Licensed Internal Code LIC Local Independent Charities of America LIC Line Integral Convolution ) (Bahrain). The outlook for both ratings remains stable. The ratings reflect LIC's improved and strong risk-adjusted capitalisation, stable financial performance and potential market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" , offset by its limited financial flexibility. LIC's risk-adjusted capitalisation increased significantly in 2007, driven by the significant unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. of BHD BHD In currencies, this is the abbreviation for the Bahraini Dinar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 13.8 million (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 36.57 million). LIC has maintained a "provision for solvency margin" in the life fund. A.M. Best considers this provision to be part of LIC's risk-adjusted capital, although it is classified for accounting purposes as part of the policyholder's liabilities. Furthermore, A.M. Best believes that LIC's risk-adjusted capitalisation will remain stable in 2008 and the financial dependence on its parent company, Life Insurance Corporation of India The Life Insurance Corporation of India (LICI) is the largest life insurance company in India; it is fully owned by the Government of India. It was founded in 1956. , will result in limited flexibility. LIC reported net profits of approximately BHD 1.14 million (USD 3.02 million) at year-end 2007, a near 50% increase on reported net profits of BHD 0.78 million (USD 2.07 million) in 2006. This resulted in a decrease in reserves needed for the company's life fund from profits on the lapsing of policies at short durations, which was partially offset by growth in new business. A.M. Best expects net profits to rise by nearly 5% in 2008 to BHD 1.7 million (USD 4.48 million) due to a sustainable growth momentum from the new management marketing drive and stable investment income. LIC has established a dominant position as a provider of USD denominated policies to cater to the insurance needs of the expatriate Indian population residing in the countries of the Gulf Cooperation Council. A.M. Best believes that gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. are likely to be able to sustain a 10% growth in 2007 due to the buoyancy buoyancy (boi`ənsē, b  `yən–), upward force exerted by a fluid on any body immersed in it. Buoyant force can be explained in terms of Archimedes' principle. of the
insurance market in that region, which will continue to influence the
demand for protection products, especially amongst the middle to higher
income earners within the under-insured non resident Indian population
of the Gulf States.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion