CRISIL Ratings said that the rating centrally factors in ICICI Lombard's strategic importance to, and expectation of the continued support from, ICICI Bank.

The rating also reflects the company's leadership position among private sector general insurance companies, its healthy capitalization with expected sustenance in high cushion in solvency ratio over regulatory minimum and, sound investment quality.

“These strengths are partially offset by modest albeit improving underwriting performance,” the credit ratings agency said.

ICICI Lombard is one of India's largest private sector general insurance companies based on gross direct premium. Its parent - ICICI Bank, which is one of the largest private sector banks in the country, holds 48.1% stake in the company as of 23 September 2021. ICICI Lombard (by virtue of its scheme of arrangement with Bharti Axa) had a pro-forma market share of 9.4% and a branch network of over 276 branches as of 30 June 2021.

The company reported 61.9% fall in net profit to Rs 151.63 crore on a 20% rise in total income to Rs 3,414.09 crore in Q1 FY22 over Q1 FY21.

The scrip rose 0.63% to end at Rs 1588.20 on the BSE on Friday.