Aviva life insurance has a solvency ratio of 1.82 as of March 2022. Solvency ratio is a very important factor to consider while selecting an insurer. IRDAI publishes the solvency ratio of Aviva life quarterly (i.e. June, September, December and March) in their annual reports.
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Solvency Ratio of Aviva Life Insurance from 2006 to 2023
Considering the solvency ratio is crucial when choosing an insurance company, as it provides insights into their financial stability and strength. Fortunately, Aviva Life is a financially sound company. To ensure transparency, we’ve compiled a year-by-year breakdown of Aviva Life Insurance’s quarterly solvency ratios.
| Financial Year | June | September | December | March | Average Solvency Ratio |
| 2022-23 | 1.87 | 1.85 | 1.86 | 1.84 | 1.86 |
| 2021-22 | 2.22 | 2.23 | 2.32 | 1.82 | 2.15 |
| 2020-21 | 2.48 | 2.42 | 2.50 | 2.24 | 2.41 |
| 2019-20 | 3.07 | 3.09 | 3.01 | 2.42 | 2.90 |
| 2018-19 | 2.92 | 2.89 | 2.95 | 2.99 | 2.94 |
| 2017-18 | 3.36 | 3.09 | 3.03 | 2.94 | 3.11 |
| 2016-17 | 3.86 | 3.76 | 3.67 | 3.46 | 3.69 |
| 2015-16 | 3.92 | 3.93 | 3.89 | 3.84 | 3.90 |
| 2014-15 | 4.09 | 4.04 | 3.74 | 3.80 | 3.92 |
| 2013-14 | 4.27 | 4.27 | 3.93 | 4.15 | 4.16 |
| 2012-13 | 4.62 | 4.14 | 3.56 | 4.23 | 4.14 |
| 2011-12 | 5.15 | 4.71 | 4.41 | 5.15 | 4.86 |
| 2010-11 | 4.26 | 3.44 | 4.13 | 5.40 | 4.31 |
| 2009-10 | 3.61 | 5.23 | 5.59 | 5.12 | 4.89 |
| 2008-09 | 2.67 | 5.45 | 3.78 | 5.91 | 4.45 |
| 2007-08 | – | – | – | 2.37 | 2.37 |
| 2006-07 | – | – | – | 6.31 | 6.31 |
| 2005-06 | – | – | – | 2.80 | 2.80 |
What is a Solvency Ratio?
Solvency ratio is an important metric used to measure the ability of an insurance company to meet its short-term and long-term financial liabilities. It indicates the insurer’s financial strength and stability.
How is Solvency Ratio Calculated?
Solvency ratio is calculated by dividing the Available Solvency Margin (ASM) to the Required Solvency Margin (RSM) of the company. In simpler terms it is the ratio of net operating income to the debt liabilities and calculated by the formula:
Solvency Ratio = (Total Income + Depreciation) / (Short Term Liabilities + Long Term Liabilities)
More the assets are against the liabilities, higher will be the solvency ratio.
Aviva Life Insurance Regulatory Requirement (IRDAI) on Solvency Ratio?
IRDAI has made it mandatory for all insurance companies to have minimum solvency ratio of 1.5 and minimum solvency ratio margin* of 150%
*The solvency margin is the extra capital the companies must have over and above the death claim amounts they are likely to incur. It acts as financial support in extreme situations.
Claim settlement process of Aviva Life Insurance
Aviva life insurance follows a simple and quick claim settlement process.
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Claim settlement ratio of Aviva Life Insurance
Aviva Life Insurance Claim Settlement Ratio Trend from 2006 to 2023 >
Aviva Life Insurance Solvency Ratio FAQs
Aviva life insurance has a solvency ratio of 1.82 in 2021-22.
Solvency ratio is a measure of the insurance company’s ability to meet its short-term and long-term financial liabilities.
Sahara India life insurance has the 8.8 as highest solvency ratio in 2022.
As per IRDAI 1.5 is considered as a good solvency ratio.
Solvency Ratio = (Total Income + Depreciation) / Liabilities
This covers all the points on Aviva life insurance solvency ratio. In case you have any suggestions or questions, please write in the comment box and we will get back to you.