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United India Insurance Company Limited’s credit ratings downgraded - AM Best
Last update: 29/08/2019

KUALA LUMPUR, Aug 29  -- AM Best has downgraded the Financial Strength Rating (FSR) to C++ (marginal) from B (fair) and the Long-Term Issuer Credit Rating (Long-Term ICR) to ‘b+’ from ‘bb+’ for United India Insurance Company Limited (United).

The outlook of the FSR remains stable, while the outlook of the Long-Term ICR remains negative, according to a statement.

The negative rating outlook for the Long-Term ICR reflects the potential for further deterioration in United’s risk-adjusted capitalisation and operating performance over the near to medium term.

The credit ratings reflect the company’s balance sheet strength, which AM Best categorised as adequate, marginal operating performance, neutral business profile and marginal enterprise risk management.

Risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, deteriorated to adequate from very strong during fiscal year 2019, due to a combination of significant reserve strengthening for motor third-party liability business and large underwriting losses from other product lines.

Capital and surplus have declined significantly by 29.1 per cent to INR64 billion (US$0.9 billion) as of March 31. (INR100 = RM5.87).

The company repeatedly has fallen short of local minimum regulatory solvency requirements in recent years. To support an improvement in this position, the company issued INR9 billion of subordinated debt in 2017.

AM Best is a global rating agency and information provider with unique focus on the insurance industry. More information at




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