AM BEST ASSIGNS CREDIT RATINGS TO INDIA'S ICICI LOMBARD GENERAL INSURANCE

KUALA LUMPUR, Feb 7 (Bernama) -- Global credit rating agency, AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) to ICICI Lombard General Insurance Company Limited (ICICI Lombard), India.

AM Best said in a statement the outlook assigned to these credit ratings (ratings) was stable.

“The ratings reflect ICICI Lombard’s balance sheet strength, which AM Best assessed as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management,” it said.

ICICI Lombard’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which was at the strongest level as of fiscal year ending March 31, 2022 and is expected to remain at this level over the near to medium term, as measured by Best’s Capital Adequacy Ratio.

Positive balance sheet factors include ICICI Lombard’s robust regulatory solvency position and its track record of strong internal capital generation, with shareholders’ equity having exhibited a five-year average compound annual growth rate of 16.5 per cent, as calculated by AM Best (fiscal years 2018-2022).

In addition, AM Best viewed ICICI Lombard’s operating performance as strong, with a five-year average return-on-equity ratio of 18.5 per cent, as estimated by the rating agency (fiscal years 2018-2022).

Prospectively, AM Best anticipates underwriting performance to remain pressured by competitive market conditions; however, investment income is expected to continue supporting strong overall earnings.

The business profile assessment of neutral reflects the company’s position as the second-largest non-life general insurer in India, with an overall market share of 8.1 per cent based on fiscal year 2022 gross domestic premium income.

-- BERNAMA