ICICI Lombard General’s capitalisation steady in the medium term

The company is expected to enhance its underwriting risk selection.

ICICI Lombard General Insurance Company Limited’s risk-adjusted capitalisation is expected to remain at the strongest level in the medium term, supported by its financial flexibility and track record of capital-raising activities, AM Best said. 

Its investment portfolio, whilst moderate-risk, includes exposure to higher-risk assets such as equities and unrated fixed-income securities.  

The company’s operating performance remains strong, with a five-year average return-on-equity of 17.6% for fiscal years 2020-2024. 

Investment income, including capital gains, continues to offset underwriting losses. Underwriting performance improved slightly in fiscal year 2024 due to lower motor and health insurance claims, though the expense ratio increased. 

Portfolio remediation efforts have further strengthened underwriting margins in early fiscal year 2025.  

The company is expected to enhance its underwriting risk selection through technology and analytics, though ongoing market competition may challenge its technical margins.