AM Best has affirmed the Financial Strength Rating of A- (Excellent), the Long-Term Issuer Credit Rating of “a-” (Excellent) and the National Scale Rating of aaa.IN (Exceptional) of General Insurance Corporation of India (GIC Re) (India). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect GIC Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, favourable business profile and appropriate enterprise risk management. In addition, the ratings factor in a neutral impact from the company’s ownership by the government of India.

GIC Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is expected to be maintained at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio (BCAR). While exhibiting a level of volatility historically, the company’s shareholder equity has increased significantly over the past five years, driven by investment fair value gains and an increase in retained earnings. Notwithstanding, the company’s exposure to market risk remains a partially offsetting balance sheet strength factor, given its relatively high allocation to domestic equity investments.

AM Best views GIC Re’s operating performance as adequate, supported by a five-year average return-on-equity (ROE) ratio of 8.2% (FY 2021-2025). In fiscal year 2025, GIC Re reported an ROE ratio of 9.2% based on consolidated profits, although its underwriting performance remained unprofitable with an elevated combined ratio. Investment income, including realised gains on equity investments, is a key contributor of overall earnings and historically has made up for the lack of technical profits.

AM Best assesses GIC Re’s business profile as favourable. The company is the 9th largest non-IFRS 17 reinsurer globally, according to AM Best’s most recent annual ranking of the top 50 global reinsurers. GIC Re is a leading reinsurer in India, with a dominant position in its domestic market. The company benefits from mandatory domestic reinsurance cessions of 4%, and also a right of first refusal that provides it with preferential access to domestic reinsurance placements. The company’s underwriting portfolio is generally well-diversified by lines of business and geography.

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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