Mumbai : The General Insurance Corporation of India (GIC Re), a leading global reinsurer, has received an upgrade in its Financial Strength Rating (FSR) and Long-Term Issuer Credit Rating (ICR) from AM Best, a globally recognized credit rating agency. Following this year’s assessment, GIC Re’s FSR has been upgraded to “A-” (Excellent) from “B++” (Good), and the Long-Term ICR has been upgraded to “A-” (Excellent). The outlook for both ratings has been revised to stable. Additionally, AM Best has reaffirmed GIC Re’s India National Scale Rating (NSR) of aaa.IN (Exceptional) with a stable outlook.
The upgrades reflect GIC Re’s strong balance sheet, marked by an improvement in risk-adjusted capitalization, as evidenced by Best’s Capital Adequacy Ratio (BCAR), which has maintained its position at the strongest level for the fourth consecutive year. This achievement has been driven by significant gains in investment fair value and an increase in retained earnings, contributing to a rise in shareholders’ equity.
Furthermore, GIC Re’s business profile has been recognized as favorable, with the company ranked as the 10th largest (non-IFRS 17 basis) reinsurer globally, according to AM Best’s latest rankings of the top 50 reinsurers worldwide. In the domestic market, GIC Re holds a dominant market share of 60-70%, underpinned by a well-diversified underwriting portfolio.
Mr. Ramaswamy N, Chairman and Managing Director of GIC Re, commented on the ratings: “We are pleased with the upgraded ratings from AM Best, which acknowledge our commitment to strengthening our balance sheet and further enhancing our enterprise risk management practices. These developments affirm GIC Re’s solid standing in both the domestic and global reinsurance markets.”
As a Domestic Systemically Important Insurer (D-SII), GIC Re continues to benefit from its strong position, with the Insurance Regulatory and Development Authority of India (IRDAI) ensuring additional regulatory oversight due to its critical role in India’s insurance sector.