Most of the premium growth stemmed from the implementation of a new crop insurance scheme, Pradhan Mantri Fasal Bima Yojana, which is heavily subsidized by the government. As an Indian reinsurer, GIC Re enjoys priority offers in reinsurance placement in India. The company also has decided to retain most of the risks pertaining to the crop insurance scheme.

Although GIC Re’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), has declined due to rapid growth in business volume, it remains supportive of the rating level. Nonetheless, the company’s risk-adjusted capitalization could be affected adversely by large underwriting losses or negative movements in its investment portfolio.

A.M. Best will continue to track GIC Re’s premium and capital growth. Any material changes to GIC Re’s balance sheet strength will be reviewed to assess any impact on the company’s ratings.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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