On 4th February 2024, The Daily Tribune Published a News Article on LIC (International)’s Positive Rating (B) by AM Best.

By February 6, 2024Uncategorized

The international rating agency, AM Best affirms the rating of one of  the leading life insurance companies in Bahrain, Life Insurance Corporation (International) B.S.C. (c), an offshore subsidiary of the insurance behemoth, Life Insurance Corporation of India. LIC (international) has received a Financial Strength Rating of “B” (Fair) and Long Term Issuer Credit Rating of “bb” (Fair), both while retaining a stable outlook.

The rating reflects the strength of LIC (international) balance sheet which is evaluated as Strong.  However, volatility in company’s capital adequacy and its high level of sensitivity to financial markets remain offsetting factors to its balance sheet strength. Moreover, AM Best expects the company’s prospective capital adequacy to demonstrate greater resilience post the capital injection from its parent company, Life Insurance Corporation of India (LIC of India), and internal capital generation.

Company’s strategic objective is oriented towards strengthening the risk-adjusted capitalization through less capital-intensive business, such as unit-linked insurance products (ULIP). The rating indicates a fair ability of the Company to meet the ongoing insurance obligations. However, financial strength is vulnerable to adverse changes in underwriting and economic conditions.

During the period of five years from 2018 to 2022, the weighted average return on equity (ROE) of the company was -9.8%. The ROE is negatively skewed by the significant loss incurred in 2022. However, the new strategies implemented by the company for a turnaround has led to achieving ROE of 5.7% in 9 months till Q3 of 2023.

LIC International’s Chief Executive Officer, Mr. Debashis Prasad Pattanaik said:  “We are delighted at the affirmation of rating by AM Best, the International Rating Agency which serves as a testament to strategic measures adopted by the company in improving the capital adequacy.  Company is confident to post a positive operational result as at Dec 2023, which will enable the Company to enhance the discretionary bonus to its policyholders. Besides, the company with its brand equity, proven track record and avowed customer service, and with its new strategies and long-term vision is confident of charting a higher growth path, going forward.

To conclude, LIC International is poised to meet the customer and other stakeholders’ expectations through product innovation, operational digitalization, exploring newer business opportunities and well-researched insurance solutions: aiming to become the ultimate ‘life insurer of choice’ for the insuring public.”

For the Article visit: https://www.newsofbahrain.com/business/96642.html