According to a statement of JCR-VIS on Monday, on the back of considerable investments that have been very profitable over the years, SGI's ability to repay its borrowings and claims has remained strong.
While the company's business volumes have continued to increase till 2004, the management plans to reduce less profitable business in the current year and premium levels may therefore decline temporarily. Concurrently, SGI has scaled down its organisational infrastructure, with the objective of focusing on areas with higher underwriting margins. This rating denotes high capacity to meet policyholder and contract obligations. Risk factor may vary over time due to business/economic conditions.