A.M. Best Affirms Ratings of The Oriental Insurance Company Limited

HONG KONG--()--A.M. Best has affirmed the financial strength rating of B++ (Good) and the issuer credit rating of “bbb+” of The Oriental Insurance Company Limited (Oriental) (India). The outlook for both ratings is stable.

The ratings reflect Oriental’s strong risk-adjusted capitalization and consistently favorable investment performance.

Oriental continues to maintain strong risk-adjusted capitalization, as reflected by its Best’s Capital Adequacy Ratio (BCAR), which is adequate for its current rating level. The company has consistently produced favorable investment returns contributed by the interest and dividends income. The investment income significantly enhanced the overall operating performance.

Partially offsetting these positive rating factors are Oriental’s deteriorated underwriting performance and high equities investment risk.

Oriental’s overall underwriting results remained unsatisfactory in fiscal year 2014-15, attributing to the worsening loss experience in its health portfolio and the increasing cost in operation. Also, Oriental’s equity exposure remained high on a market value basis, with equity accounting for approximately half of the total investments. Adverse movement in the equity market could have a negative impact on Oriental’s operating results and capitalization level.

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.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best Company
Roy Lee
Financial Analyst
+852-2827-3418
roy.lee@ambest.com
or
Moungmo Lee
Managing Director, Analytics
+65-6589 8400, ext. 210
moungmo.lee@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+(1) 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
+(1) 908 439 2200, ext. 5644
james.peavy@ambest.com

Contacts

A.M. Best Company
Roy Lee
Financial Analyst
+852-2827-3418
roy.lee@ambest.com
or
Moungmo Lee
Managing Director, Analytics
+65-6589 8400, ext. 210
moungmo.lee@ambest.com
or
Christopher Sharkey
Manager, Public Relations
+(1) 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
or
Jim Peavy
Assistant Vice President, Public Relations
+(1) 908 439 2200, ext. 5644
james.peavy@ambest.com