ICRA assigns an iAAA rating to claims paying ability of IL

New Delhi, May 9 (UNI) Credit rating agency ICRA has assigned an iAAA rating indicating highest claims paying ability to ICICI Lombard General Insurance Company Limited (IL).

The rating takes into consideration IL's strong parentage, the high growth prospects for the general insurance business in the country, the company's strong capitalisation level, prudent underwriting and reinsurance strategy, and its satisfactory underwriting performance.

The agency notes that a key challenge for the general insurance sector companies would be the likely pricing pressures arising out of the growing competition and the impending de-tariffing of the fire and motor businesses.

While detariffing could create near term pricing pressures, the agency expects it to lead to more appropriate insurance pricing in the medium term.

IL's competitive cost structure and prudent underwriting practices, places it in a favourable position to compete in the de-tariffed environment.

Further, the strong financial profile of IL's parent ICICI Bank (rated LAAA by ICRA), its commitment to IL demonstrated through regular capital infusion for meeting IL's growth requirements, and the beneficial impact of ICICI's established position in corporate and retail finance on IL's business profile support the rating.

ICICI Lombard General Insurance Company Limited is a joint venture between ICICI Bank Limited (ICICI) and the US-based 27.5 billion dollar Fairfax Financial Holdings Limited (FFHL).

UNI MP ARB HS1557