18 July 2021
ACRA AFFIRMS ITS AA(RU) RATING OF "GIC PERESTRAKHOVANIE"
On July 19, 2021, GIC Perestrakhovanie LLC, a 100% subsidiary of General Insurance Corporation of India (GIC Re), was affirmed its current credit rating of AA (RU), outlook "stable", by the Russian rating agency ACRA.
The official press-release was published at ACRA's web site:
As an year earlier, when initially assigning the rating, ACRA outlines the strong financial profile and moderately strong business profile of GIC Perestrakhovanie, as well as comprehensive support from it’s parent company with a high level of creditworthiness. In this regard, the rating agency highlights: the presence of a deep operational integration of GIC Perestrakhovanie and GIC Re in the context of management standards, risk management system, underwriting as also full and unconditional guarantee provided by GIC Re to all counterparties of the Russian company under reinsurance contracts.
In addition, ACRA notes: potentially high operational efficiency of GIC Perestrakhovanie, taking into account the relatively low level of loss ratio - about 70% over the past five years; high capital adequacy; high asset quality and liquidity. All these parameters are estimated by ACRA on the basis of the reinsurer's conservative policy regarding insurance risk and risks associated with assets.
The level of capital adequacy of GIC Perestrakhovanie is rated as high. Among other things, in the second quarter of 2021, the reinsurer received additional funds from the parent company to increase capital in accordance with the single capitalization increase plan approved by GIC Re when opening the Russian subsidiary in 2019.
Finally, ACRA’s assessment of asset quality of GIC Perestrakhovanie outlines the fact that the reinsurer invests primarily in low-risk assets, and also maintains a high capital-to-asset ratio.
MOKASHI Sanjay, General Director of LLC "GIC Perestrakhovanie":
"We thank ACRA, the leading Russian rating agency, for the high professional assessment of the dynamics of our company's development. August 1 will mark exactly one year since we started our reinsurance activities in Russia, and we are very satisfied with the results achieved over the past period. At the same time, this is just the beginning. We are actively making plans for further development, expansion of operations, and in this direction, financial strength ratings have been and remain the most important factors taken into account by the market community, regulators, as well as the companies themselves in strategic and operational management."