Operating performance strong for ICICI Lombard: AM Best

Its underwriting results are offset by its reliance on investment income.

Mumbai-headquartered ICICI Lombard General Insurance’s outlook is anchored, attributable to its strong balance sheet, operating performance, neutral business profile and adequate enterprise risk management (ERM), said AM Best.

ICICI Lombard's balance sheet strength is supported by robust risk-adjusted capitalisation expected to remain at the strongest level over the medium term. The company demonstrates strong internal capital generation and financial flexibility through its history of capital-raising activities.

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Operating performance is assessed as strong, with a five-year average return-on-equity ratio of 18.2%. Whilst reliant on investment income to offset underwriting losses, overall operating results are robust, with consistent outperformance compared to the domestic general insurance market in India.

AM Best said ICICI Lombard holds the second-largest market share in India's non-life general insurance sector, with a well-diversified underwriting portfolio. Despite market competition, the company is expected to enhance underwriting risk selection through technology adoption, although challenges to technical margins persist.