A.M. Best
The revised Long-Term ICR outlook reflects the continued deterioration in Oriental's underwriting performance. The company's combined ratio has been unfavorable over the past five years, and the company also incurred a substantial reserve charge for the fiscal year ending March 31, 2017, on account of strengthening technical reserves under supervision from the Insurance Regulatory and Development Authority of India. This contributed to the combined ratio being 147%. Although results of the first half of the current fiscal year show signs of improvement, it remains to be seen if this trend will continue.
In terms of investment performance, Oriental's equity portfolio continues to perform well, which mitigates some of the impact from the company's underwriting losses.
