Regulator states concern over National Insurance
Deteriorating Solvency ratio of National Insurance
The IRDAI has written to the Finance Ministry raising the alarm over the deteriorating financial situation of state-run general insurer National Insurance.
“IRDAI has flagged this issue repeatedly with the government as the company’s solvency ratio has gone below 1.0, as against the regulatory requirement that all insurance companies maintain a minimum ratio of 1.5 times of liabilities at all times,” a government official aware of the matter told on condition of anonymity.
“The government will need to infuse around INR30bn ($435m) into the company to keep it afloat for the next two quarters,” the official said.
Currently under consideration by the government are plans to merge National Insurance with two other government-owned general insurers, namely, Oriental Insurance and United India Insurance.