Life Insurance Corporation (International), an offshore subsidiary of Life Insurance Corporation of India, has received a rating affirmation from the international rating agency, AM Best.
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’. The stable outlook reflects the expectation that the company will continue its strong balance sheet fundamentals over the medium term while ensuring full compliance with regulatory solvency requirements. The company’s operating performance and business profile fundamentals are projected to remain stable as it continues to execute its strategic plan.
As of year-end 2024, the company reported its strongest consolidated risk-adjusted capitalisation, according to Best’s Capital Adequacy Ratio (BCAR). While the company’s capital adequacy has remained sensitive to fluctuations in financial markets and has faced significant volatility in recent years, the capital infusion in 2021 and subsequent corrective measures taken by management ensuring greater stability moving forward and resilient capital structure.
The company’s investment portfolio is primarily comprised of well-diversified fixed-income securities, across multiple sectors and regions, reinforcing the company’s financial strength and long-term sustainability.
The company has maintained a consistent track record of operational profitability, though with some volatility due to fluctuations in interest rates. For the fiscal year 2024, it reported a strong return on equity (ROE) of 9 per cent under the IFRS 17 framework, reflecting the resilience of its investment strategy and effective financial management.
LIC International’s chief executive Debashis Prasad Pattanaik said: “The affirmation of rating by AM Best, was expected though, in alignment with the persistent implementation of various prudent and tactical measures by the company. Strong balance sheet and adequate operating performance as at December 2024, demonstrate the company’s resolve to scale among other things the discretionary bonus to policy holders. The company is sanguine about a positive growth trajectory given the aggressive initiatives in the realm of digitalisation, product innovation and novel distribution tie-ups.”
In conclusion, LIC International is strategically focused on fulfilling the evolving needs of its customers and stakeholders through continuous product innovation, digital transformation, and the pursuit of new business avenues. With a strong emphasis on delivering thoughtfully designed insurance solutions, the company aspires to be recognised as the life insurer of choice for the wider public.
&uuid=(email))