A.M. Best has revised the outlooks to stable from positive,and affirmed the Financial Strength Rating of A- (Excellent) and the Long-TermIssuer Credit Rating of "a-" of New India Assurance Co. Ltd. (New India) (India).

While the company remains profitable overall, its pretaxmargin has weakened, as underwriting performance for the 12 months to March2016 and the six months to September 2016 has deteriorated and fallen behindits projections.

The Credit Ratings (ratings) reflect New India's strongrisk-adjusted capitalization, which is supported by low underwriting leverage.In addition, New India's adjusted capital and surplus was the largest amongdirect non-life insurers in India, standing at INR 304 billion (USD 4.6billion) as of 31 March 2016. However, the company's capital position isexposed to stock market volatility, as fair value reserves accounted for alarge portion of its capital position.