ICICI Lombard General Insurance Company Limited is poised to maintain strong risk-adjusted capitalisation in the medium term, according to AM Best. The company’s financial flexibility and a proven history of successful capital-raising activities underpin this outlook.
Although the company’s investment portfolio carries moderate risk, it holds significant exposure to higher-risk assets, such as equities and unrated fixed-income securities.
The company has demonstrated solid operational performance, boasting an average return-on-equity of 17.6% over the five-year period from fiscal years 2020 to 2024. Investment income, including capital gains, continues to counterbalance underwriting losses. In fiscal year 2024, underwriting performance showed slight improvement due to reduced motor and health insurance claims, despite a rise in the expense ratio.
Ongoing portfolio remediation efforts have further bolstered underwriting margins in the early months of fiscal year 2025.
ICICI Lombard is expected to refine its underwriting risk selection by leveraging technology and analytics. However, the company faces ongoing challenges from market competition that could impact its technical margins.
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