UAE: HDFC International Life & Re assigned rating by S&P
Source: Middle East Insurance Review | Jan 2019
HDFC International Life & Re, a subsidiary of HDFC Life, has been assigned a “BBB” rating with stable outlook by S&P.
“The rating reflects our assessment of the company as a startup reinsurer, albeit one operating in the relatively low-risk life reinsurance space, supported by extremely strong capital adequacy and abundant liquidity,” said the rating agency.
“The stable outlook reflects our view that HDFC Life Re will maintain its extremely strong capital adequacy and low risk tolerance, while gradually increasing its premium base in both the UAE and the wider Middle East and North Africa region, and start reporting profitable results on a technical as well as on an overall basis,” it added.
HDFC International Life & Re, a wholly owned subsidiary of India’s HDFC Life, is the first life reinsurer to start operations out of the DIFC. Its business consists of both treaty and facultative reinsurance arrangements assumed from ceding companies in the GCC region, relating to a broad range of product lines covering individual life, group life and group credit life.
Ms Vibha Padalkar, chairman of HDFC International Life & Re, and MD & CEO of HDFC Life said, “HDFC International Life & Re is our first overseas foray, and we remain committed to its continued success. This rating reflects our robust capital shield, strong liquidity profile and a balanced risk portfolio. HDFC International Life & Re will continue to develop tools and platforms to support our clients.”
HDFC International Life & Re was incorporated in the DIFC in January 2016 with a registered paid-up capital of $29.5m. M