AM Best Downgrades and Withdraws Credit Ratings of GIC Perestrakhovanie LLC

LONDON--(BUSINESS WIRE)--AM Best has downgraded the Financial Strength Rating to B (Fair) from B+ (Good) and the Long-Term Issuer Credit Rating to “bb+” (Fair) from “bbb-” (Good) of GIC Perestrakhovanie LLC (Russia). At the same time, AM Best has maintained the under review with negative implications status on these Credit Ratings (ratings). Concurrently, AM Best has withdrawn these ratings for commercial reasons that include, but are not limited to, the sanctions recently imposed by the European Union that will ban the provision of ratings to legal persons, entities or bodies established in Russia.

The final ratings reflect GIC Perestrakhovanie LLC’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and marginal enterprise risk management. The ratings also factor in rating lift due to the implicit and explicit support that GIC Perestrakhovanie LLC receives from its parent, General Insurance Corporation of India.

The rating downgrades reflect deterioration in GIC Perestrakhovanie LLC’s balance sheet strength due to further increases in geopolitical, economic and financial system risks in Russia, where the company is domiciled and underwrites the majority of its business. The downgrades also factor in the risk of elevated claim costs caused by the depreciation of the Russian rouble and the associated inflationary pressures.

The ratings are under review with negative implications due to the potential for further deterioration in economic and financial system conditions in Russia and for this to have an adverse impact on the credit profile of GIC Perestrakhovanie LLC.

This press release relates to Credit Ratings that have been published on AM 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 see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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