RUSSIA: ACRA Rating Agency has affirmed the rating of GIC Perestrakhovanie at AA (RU)

20 July 2021 — Marina MAGNAVAL
On July 19, 2021, ACRA, Russian rating agency, affirmed the effective credit rating of GIC Perestrakhovanie (100% subsidiary of General Insurance Corporation of India (GIC Re) at AA (RU), outlook stable, the reinsurer said.

As before, ACRA noted strong financial profile and moderately strong business profile of the reinsurer, as well as the company's comprehensive support from the parent structure with high level of creditworthiness. The rating agency highlighted deep operational integration in terms of management standards, risk management system, underwriting; as well as that GIC Re is providing full and unconditional guarantee to all counterparties of the Russian company under reinsurance contracts.

Besides, ACRA noted potentially high operational efficiency of GIC Perestrakhovanie, given the relatively low loss ratio (about 70% over the past five years), high capital adequacy, high asset quality and liquidity. High assessment of the Russian company's asset quality is associated with the fact that the company invests mainly in low-risk assets, as well as maintains a high ratio of capital to assets.

"We would like to thank ACRA, the leading Russian rating agency, for their high professional assessment of our company's development dynamics. August 1 will mark exactly one year since we started our reinsurance business in Russia, and we are more than 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 our operations, and in this regard financial strength ratings have been and remain the most important factors considered by the market community, regulators, as well as by the companies themselves in strategic and operational management", commented MOKASHI Sanjay, General Director of GIC Perestrakhovanie.

GIC Perestrakhovanie is a Russian reinsurance company, the sole shareholder of which is General Insurance Corporation of India (GIC Re). The company has been active in the Russian and former USSR markets since August 2020, offering reinsurance services in all traditional non-life LoBs. The company's effective financial strength ratings: AA (RU) by ACRA; B ++ (Good) by A.M. Best. General Insurance Corporation of India (GIC Re) is a government-owned specialized reinsurance company in India. GIC Re is the largest reinsurer in its region, and by 2010 GIC Re entered the Top 10 international non-life reinsurers in terms of GWP.

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