A.M. Best Affirms Ratings of New India Assurance Company Limited.OLDWICK, N.J. -- A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating of A (Excellent) and the issuer credit rating of "a" of the New India Assurance New India Assurance is currently the largest Non-Life Insurance Company in India. It is one of the five Public Sector insurance companies in India with its headquarters in Mumbai. Previously it was a subsidiary of the General Insurance Corporation of India (GIC). Company Limited (New India) (India). The outlook for both ratings remains stable. The ratings reflect New India's leading business profile in the Indian insurance market and an expected improvement in underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. performance. An offsetting factor is the pressure on risk-adjusted capitalisation arising from a high proportion of equities in the company's investment portfolio. A.M. Best believes that New India is likely to maintain its leading business position as the largest direct insurer in India, with a market share of approximately 23% as at March 2005, despite an expected increase in competition from private companies. Furthermore, A.M. Best expects New India to increase its acceptance of international business, benefiting from the opening of an office in New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. in 2005. A.M. Best anticipates an improvement in New India's combined ratio at year-end March 2006--though still above 110%--following a reduction to 116.1% at year-end March 2005 (from 118.1% in the previous year). The prospective improvement is likely to result mainly from an expected reduction in management expenses as the company continues to benefit from the absence of costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its voluntary retirement scheme. A.M. Best believes that New India's risk-adjusted capitalisation, though at a strong level, is under pressure from its high exposure to the equity markets (with approximately 45% of invested assets at market value in domestic equities). Although the company's investment portfolio is in line with regulatory guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , A.M. Best believes that the concentration of New India's investment portfolio in India exposes the company to increased credit risk. For Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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