HDFC ERGO General Insurance Company, India’s leading non-life insurer, announced that ICRA has reaffirmed the iAAA rating for the Company’s claims paying ability. Further both ICRA and CRISIL have reaffirmed the AAA rating for the Company’s subordinated debt issuance.
The rating factors in HDFC ERGO’s strong market position with its diversified product portfolio and distribution network, robust risk management practices, capital position, sound investment quality and improving underwriting performance.
Moreover, the rating also reflects that the rating agencies believe that HDFC ERGO will maintain a comfortable cushion in the solvency ratio over regulatory stipulation at all points of time.
“The AAA rating from both ICRA and CRISIL, not just reaffirms HDFC ERGO as a leading player in the General Insurance sector, but also as a company that has the backing of a strong lineage, both from HDFC and Munich Re. The reaffirmation of these ratings (the iAAA from ICRA since 2010) is an independent acknowledgement of our financial strength and claims paying ability among the consumers.” said Mr. Mukesh Kumar, Executive Director, HDFC ERGO General Insurance Company.
Some of the key drivers for these rating are:
- Strong parentage of HDFC and ERGO with an experienced management team
- Revival of growth in FY 2017 with improvement in profitability through better underwriting and investment performance
- Adequately capitalized for the current scale of operations
- Strong market position with a diversified product portfolio and distribution network
- Well diversified distribution network with a strong Bancassurance channel (excluding crop business)