AM Best, the international credit rating agency, has upgraded the Long-Term Issuer Credit Rating (ICR) of Life Insurance Corporation (International) (LIC International) to ‘bb+’ (Fair) from ‘bb’ (Fair).
The agency also affirmed the company’s Financial Strength Rating (FSR) of ‘B’ (Fair), with a stable outlook assigned to both ratings.
According to AM Best, the upgrade reflects continued stability in the company’s risk-adjusted capitalisation, which remained at the strongest level in 2025, as measured by Best’s Capital Adequacy Ratio (BCAR), and supported by capital growth and surplus.
The ratings further recognise LIC International’s strong balance sheet, conservative investment strategy, and sustained internal capital generation. The company’s investment portfolio is well-diversified across fixed-income securities, sectors, and geographies, reinforcing its financial resilience.
LIC International’s operating performance was assessed as adequate, though subject to some volatility due to interest rate movements.
The company reported a three-year average return on equity (ROE) of approximately 8 per cent (2023–2025) under IFRS 17.
Underwriting results in 2025 were impacted by the establishment of a provision for future bonuses on participatory products, in line with reporting requirements.
AM Best added that it expects the company to continue to formalise and enhance its risk management framework and capabilities.
The company also continues to benefit from its strong niche positioning in serving the non-resident Indian (NRI) market across the GCC region, backed by the strength of its parent brand and the portability of its insurance solutions.
Commenting on the upgrade, LIC (International) chief executive Debashis Prasad Pattanaik said: “We are pleased with AM Best’s upgrade of our Issuer Credit Rating, which reflects the sustained strength of our capital position and the effectiveness of the strategic measures implemented by the company.
“This achievement underscores our commitment to financial discipline, policyholder value, and long-term stability. We remain confident in our future growth trajectory, supported by ongoing initiatives in digital transformation, product innovation, and enhanced distribution capabilities.”
Moving forward, the company stated it remains focused on strengthening its market position by delivering customer-centric solutions, advancing digital capabilities, and pursuing sustainable growth opportunities across the region.
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