HONG KONG--(BUSINESS WIRE)--A.M. Best has commented that the financial strength rating of A- (Excellent) and the issuer credit rating of “a-” of General Insurance Corporation of India (GIC Re) (India) remain unchanged following the devastating earthquake that struck Nepal on April 25, 2015.
GIC Re’s risk exposure in Nepal is protected by its retrocession arrangement through excess of loss (XoL) cover. The maximum net loss after XoL and the reinstatement premium is small compared with the company’s latest capital and surplus. Hence, the impact of the earthquake on GIC Re’s ratings is insignificant.
The earthquake loss development will be closely monitored by A.M. Best for any adverse impact on GIC Re’s financial strength and operating performance.
The methodology used in determining these interactive ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
Key insurance criteria reports utilized:
- Catastrophe Analysis in A.M. Best Ratings
- Evaluating Country Risk
- Rating Members of Insurance Groups
- Risk Management and the Rating Process for Insurance Companies
- Understanding Universal BCAR
Ratings are communicated to rated entities prior to publication, and unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to rating(s) that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please visit A.M. Best’s Ratings & Criteria Center.
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