Concurrently, the global rating agency focused on the insurance company has placed these credit ratings under review with negative implications.
The ratings reflect PICL’s balance sheet strength, which AM Best described as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings’ downgrade reflects a deterioration in AM Best’s view of PICL’s balance sheet strength fundamentals.
The insurance company’s risk-adjusted capitalisation for the fiscal year-ended March 31, as measured by Best’s Capital Adequacy Ratio, is expected to have significantly weakened as compared with AM Best’s prior expectations.
Moreover, the under review with negative implication status reflects the uncertainty that remains around the finalisation of PICL’s year-end 2019 financial position, as well as prospective expectations.
In order to resolve the under review status, AM Best expects to conduct a full assessment on PICL’s medium-term balance sheet strength fundamentals, as well as undertake a further review of risk management capabilities and capital management, in light of increasing operational scale and widening product offerings.
More details at www.ambest.com
-- BERNAMA
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