CRISIL stated 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 of high cushion in solvency ratio over regulatory minimum and, sound investment quality. These strengths are partially offset by modest albeit improving underwriting performance.

With a market share of 9.9%, ICICI Lombard remains the largest private general insurer in the industry and the second-largest general insurer at an overall level based on gross direct premium income in Q1 2024.

In fiscal 2023, the company underwrote Rs 21,025 crore as gross direct premium income, marking an annual growth of 17.0% over the past year as against a growth of 16.4% in industry gross direct premium income over the same period. For the first quarter of fiscal 2024, the company underwrote gross direct premiums Rs 6,387 crore, registering a year-on-year growth of 18.9%.

The company's financial risk profile remains supported by the company's healthy capitalization reflected in a comfortable solvency ratio of 2.51 times as on March 31, 2023 and 2.53 times as on June 30, 2023.

Overall profitability has remained supported by income from investment, evidenced by a net profit of Rs 1,729 crore for fiscal 2023 alongside an investment income of Rs 3,053 crore for the period. For Q1 2024, the company reported a net profit of Rs 390 crore.

ICICI Lombard is India's largest private sector general insurance company based on gross direct premium. The Company offers a comprehensive range of products through multiple distribution channels, including motor, health, crop, fire, personal accident, marine, engineering, and liability insurance. ICICI Lombard had 305 branches and 12,865 employees, as on 31 March 2023. Its parent - ICICI Bank, which is one of the largest private sector banks in the country, holds 48.01% stake in the company as of 30 June 2023.

The scrip added 0.56% to currently trade at Rs 1386.85 on the BSE.