AM Best downgrades GIC Re's rating

AM Best [4] downgrades GIC Re's financial strength rating from "A-" (excellent) to "B++" (good).

The long-term credit rating is also demoted from "a-" to "bbb+". The outlook for the first rating goes from negative to stable, while the outlook for the second remains negative.

The rating downgrade is due to the weakening of the reinsurer's balance sheet. Despite this decline, the company's operating performances remain good with a favourable business profile and appropriate business risk management.

The agency justifies its decision by the decline in local underwritings in the agricultural, motor, fire and health activities. The reinsurer's international portfolio also decreased similar to the decline recorded in the local activities.