AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating (FSR) of B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” (Good) of ICICI Lombard General Insurance Company Limited (ICICI Lombard) (India). Concurrently, AM Best has affirmed the India National Scale Rating (NSR) of aaa.IN (Exceptional) of ICICI Lombard with a stable outlook.

The Credit Ratings (ratings) reflect ICICI Lombard’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. In addition, the ratings factor in the neutral impact from ICICI Bank Limited (ICICI Bank), one of the largest private sector banks in India.

The revision of the FSR and Long-Term ICR outlooks to positive from stable reflects AM Best’s expectation that ICICI Lombard’s balance sheet strength fundamentals will continue to strengthen over the near to medium term, underpinned by continued robust capital generation and good capital management. The company’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is expected to remain at the strongest level over the medium term, as measured by Best’s Capital Adequacy Ratio (BCAR). ICICI Lombard’s investment portfolio is of moderate risk, given its exposure to higher-risk investments, such as equities and fixed-income securities, which are not rated on an international rating scale. An offsetting balance sheet factor includes the company’s significant exposure to contingent liabilities relating to ongoing disputes with the tax authorities in India; although, these disputes have not resulted in material financial impact to date.

AM Best views ICICI Lombard’s operating performance as strong, with a five-year average return-on-equity ratio of 17.3% (fiscal-years 2021-2025). The company reported higher net income in fiscal-year 2025 compared to the prior year, driven by better investment returns and an improvement in underwriting results. In addition, earnings remained resilient in the first nine months of fiscal-year 2026. Despite its lack of underwriting profitability, ICICI Lombard has consistently outperformed India’s general insurance market. The company’s investment income, including capital gains on equity investments, remains a key contributor of overall earnings to offset underwriting losses.

ICICI Lombard is the second-largest non-life insurer in India, with an overall market share of 8.7% based on gross domestic premium income in fiscal-year 2025. The company holds market-leading positions in major business lines, including property/casualty, marine cargo, liability and motor, as well as ranks second in the fire and engineering business lines. ICICI Lombard’s underwriting portfolio is well diversified by lines of business and distribution channels with premiums generated predominantly in India.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

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