Delay in getting strategic investor a concern for Rel Gen: Brickworks

RGICL faces competition from the private as well as public sector general insurance companies in India

Uncertainty in getting a strategic investor is casting a shadow on the profile of Reliance General Insurance Company Ltd (RGICL), a subsidiary of Anil Ambani-controlled Reliance Capital. While its track record, experienced management team, and diversified product offers work as strengths, the weak credit profile of its parent and intense competition act as constraints.

Brickwork Rating, which had placed the debt of the company on watch since November 2020, has assigned a negative outlook on subordinated debt.

The negative outlook factors in its maintaining a cushion on the solvency ratio higher than the minimum regulatory norm as the current parent