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FOR IMMEDIATE RELEASE
SINGAPORE - JUNE 23, 2017 10:49 AM (EDT)
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.
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