AM Best assigns GIC Perestrakhovanie LLC with B++ (Good)

7 December 2020 — Alexandra GUZUN
GIC Perestrakhovanie LLC (Russia) (GIC Perestrakhovanie) has been assigned by AM Best with a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of "bbb", the Outlook is stable, according to a recent press release.

AM Best considers that GIC Perestrakhovanie's balance sheet is very strong. Moreover, AM Best appreciates the adequate operating performance, limited business profile and marginal enterprise risk management of the company. The ratings factor is a rating lift from GIC Re, due to the implicit and explicit support that GIC Perestrakhovanie receives from the group.

General Insurance Corporation of India (GIC Re) has operated in Russia through a representative office till 2018, when GIC Perestrakhovanie was established as a 100% subsidiary of the company. GIC Perestrakhovanie benefits from sharing its parent company's brand name and operational resources, and also by an unconditional parental guarantee and a significant whole-account retrocession. In September 2020, GIC Perestrakhovanie commenced underwriting business.

Till now, GIC Re has injected total capital of RUB 840 million into its Russian subsidiary in order to support business growth and cover start-up costs of the company. Although AM Best notes the company's exposure to the high financial system risk in Russia, GIC Perestrakhovanie has a conservative investment strategy. An offsetting factor in the balance sheet strength assessment is the company's relatively small capital base that increases the likelihood of potential fluctuations in risk-adjusted capitalisation.


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