ICRA downgrades National Insurance Company's rating to AA from AA+

Report said NIC is likely to report a solvency ratio below the minimum regulatory requirement in FY19 as the company has no headroom to raise additional subordinated debt

Rating agency Icra has downgraded the long-term rating for National Insurance Company (NIC) from AA+ to AA. Also, the outlook on the long- term rating has been revised to “negative” from “stable”.
 
According to the Icra report on National Insurance Company, “The rating downgrade was based on the continued weak underwriting performance driven by a high combined ratio, resulting in pressure on profitability, and the high portfolio concentration in the motor and health segments, leading to a weak solvency ratio below the regulatory minimum”.
 
The report also said NIC is likely to report a solvency ratio below the