AM Best has revised the outlooks to positive from stable for ICICI Lombard General Insurance Company Limited. The agency affirmed the Financial Strength Rating (FSR) at B++ (Good) and the Long-Term ICR at “bbb+” (Good). The ratings reflect the company’s very strong balance sheet, strong operating performance, and appropriate enterprise risk management. The positive outlook anticipates continued strengthening of the balance sheet over the near to medium term.
Rating Actions by AM Best
In a development announced on February 27, 2026, AM Best has upgraded the rating outlooks for ICICI Lombard General Insurance Company Limited. Specifically, the outlooks for the Financial Strength Rating (FSR) and the Long-Term Issuer Credit Rating (Long-Term ICR) have been revised to positive from stable.
The affirmed ratings are as follows:
- Financial Strength Rating (FSR): B++ (Good)
- Long-Term ICR: “bbb+” (Good)
- India National Scale Rating (NSR): aaa.IN (Exceptional) with a stable outlook.
Rationale for Rating Affirmation
The ratings assigned by AM Best are based on ICICI Lombard demonstrating a very strong balance sheet strength. This strength is complemented by the company’s strong operating performance, a neutral business profile, and robust enterprise risk management practices. The ratings also incorporate the neutral impact stemming from its association with ICICI Bank Limited, a major private sector bank in India.
Implications of Positive Outlook
The revision of the outlooks to positive signals AM Best’s expectation that ICICI Lombard’s balance sheet strength will continue to improve in the near to medium term. This expectation is supported by projections of continued robust capital generation and sound capital management practices. The company’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is expected to remain at the strongest level.
Operating Performance Highlights
AM Best views ICICI Lombard’s operating performance favorably, citing a five-year average return-on-equity ratio of 17.3% for the fiscal years 2021 through 2025. The company achieved higher net income in fiscal-year 2025 compared to the previous year, driven by favorable investment returns and better underwriting results. Furthermore, earnings demonstrated resilience during the first nine months of fiscal-year 2026.
While the company currently lacks overall underwriting profitability, its investment income, including capital gains from equity holdings, remains crucial for offsetting underwriting losses. ICICI Lombard holds the position of the second-largest non-life insurer in India, achieving an overall market share of 8.7% based on gross domestic premium income in fiscal-year 2025. The business portfolio is noted for being well-diversified across major lines such as property/casualty, motor, and liability.
Source: BSE
