Best’s News & Research Service - June 23, 2017 10:50 AM (EDT)
A.M. Best Downgrades Issuer Credit Rating of National Insurance Company Limited; Places Under Review With Negative Implications
- June 23, 2017 10:50 AM (EDT)
Singapore //BestWire// - A.M. Best has downgraded the Long-Term Issuer Credit Rating to “bbb” from “bbb+” and affirmed the Financial Strength Rating of B++ (Good) of National Insurance Company Limited (National) (India). A.M. Best has placed these Credit Ratings (ratings) under review with negative implications.
National’s insurance liabilities as of March 31, 2016, have been understated significantly, according to a June 1, 2017, notice from the Insurance Regulatory and Development Authority of India. A.M. Best expects net reserve adjustments to result in a weakening of National’s risk-adjusted capitalization and underwriting performance from previously anticipated levels.
A.M. Best expects to resolve the under review status after assessing further financial information, as well as any corrective actions management takes to address the data quality and governance issues highlighted by this event.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.