AM Best affirms ratings of General Insurance Corporation of India.Byline: news@cpifinancial.net (Staff Writer) AM Best said it has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of a- of General Insurance Corporation of India (GIC GIC See: Guaranteed Investment Contract GIC See guaranteed investment contract (GIC). ) (India). The outlook for both ratings is stable. The rating agency said that the ratings reflect GIC's adequate risk-adjusted capitalisation, improved underwriting performance and strong market presence. GIC's risk-adjusted capitalisation, as demonstrated by Best's Capital Adequacy Ratio Capital adequacy ratio (CAR), also called Capital to Risk (Weighted) Assets Ratio (CRAR)[], is a ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss. (BCAR BCAR Brunswick County Association of Realtors BCAR British Civil Airworthiness Requirements BCAR Bullitt County Animal Rescue (Shepherdsville, KY) BCAR Business Case Analysis Report BCAR Beaver Creek Array BCAR Buffalo Civic Auto Ramps, Inc. ), supports its current rating level. Although the company's capital position has been eroded e·rode v. e·rod·ed, e·rod·ing, e·rodes v.tr. 1. To wear (something) away by or as if by abrasion: Waves eroded the shore. 2. To eat into; corrode. due to the declining Indian stock market in fiscal year 2008-09, on a market value basis approximately 50 per cent of its invested assets were in equities, and its BCAR remains sufficient. GIC's underwriting performance improved over the past two years. The company's audited financial results showed a volatile underwriting performance due to change of accounting policy; however, the adjusted combined ratio (excluding the effect of change of accounting policy) improved to 95 per cent in fiscal year 2007-08 and 96 per cent in fiscal year 2006-07 from 145 per cent in fiscal year 2005-06. As the sole domestic reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. in India, GIC's business profile remains strong, with the company maintaining its leading business position in the domestic reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. market. Offsetting factors are its reliance on investment income to generate profits and the concentration of its investment portfolio on the Indian equity market. GIC is heavily reliant on investment income to offset its underwriting losses. However, the performance of investment income depended on the Indian equity market, given that approximately 50 per cent of its investment assets were invested in equities. 2009 CPI (1) (Characters Per Inch) The measurement of the density of characters per inch on tape or paper. A printer's CPI button switches character pitch. (2) (Counts Per I Financial. All rights reserved. Provided by Syndigate.info an Albawaba.com company |
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