CRISIL Ratings has downgraded the corporate credit rating of United India Insurance Company from ‘AA’ to ‘AA-‘, citing persistent solvency challenges and weak underwriting performance. The agency also revised the outlook for National Insurance Company from ‘stable’ to ‘negative’ due to similar issues.Business Finance News
According to CRISIL, United India’s solvency ratio remains below regulatory requirements, with combined ratios between 120% and 129% over the past few quarters. Despite these challenges, the company reported a net profit of ₹27 crore for the nine months ending March 2025, a significant improvement from a net loss of ₹804 crore in FY24.
National Insurance’s solvency ratio declined from 0.63 times as of March 2022 to negative 0.53 times by December 2024, excluding the fair value change account. Its combined ratio stood at 127.5% for the first nine months of FY25.Business Finance News+1Business Finance News+1bsmedia.business-standard.com
In contrast, CRISIL reaffirmed the ‘AAA’ rating for The New India Assurance Company, highlighting its leadership position, sound investment portfolio, and healthy capitalisation.Business Finance News
Source (full link):
https://www.business-standard.com/companies/news/crisil-ratings-downgrades-united-india-insurance-rating-from-aa-to-aa-125041800864_1.html
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