ICICI Lombard General Insurance Company Limited, a leading insurance firm, has been recognized by AM Best, a credit rating agency, for its strong financial performance and risk-adjusted capitalization. The company’s risk-adjusted capitalization is expected to remain at the strongest level in the medium term, backed by its financial flexibility and ability to raise capital. The company’s investment portfolio, while moderate-risk, includes exposure to higher-risk assets such as equities and unrated fixed-income securities.
The company’s operating performance has been strong, with a five-year average return-on-equity of 17.6% for the 2020-2024 period. Investment income, including capital gains, has offset underwriting losses. Although underwriting performance improved slightly in fiscal year 2024 due to lower motor and health insurance claims, the expense ratio increased. The company has also made progress in remediating its underwriting margins in early fiscal year 2025.
Additionally, ICICI Lombard is expected to enhance its underwriting risk selection through the use of technology and analytics. However, ongoing market competition may challenge its technical margins. Overall, AM Best’s assessment indicates that ICICI Lombard’s strong financial performance and risk-adjusted capitalization position it well for the future, despite the challenges it may face.
This recognition comes as ICICI Lombard continues to grow and expand its operations, and it highlights the company’s commitment to maintaining its strong financial position and underwriting standards.