Exide Life Insurance Solvency Ratio Trend 2006 to 2023

Exide life insurance has a solvency ratio of 2.17 as of March 2022. Solvency ratio is a key factor to consider while choosing an insurer. IRDAI publishes the solvency ratio of Exide life quarterly (i.e. June, September, December and March) in their annual reports.

Solvency Ratio of Exide Life Insurance from 2006 to 2023

Solvency ratio is an important factor to consider when selecting an insurance company as it gives the idea of the financial strength and stability of the insurer. Exide life is financially a stable company. We have made a year wise list of solvency ratios declared by Exide life insurance on a quarterly basis.

Financial Year	June	September	December	March	Average Solvency Ratio
2022-23	2.11	2.16	**	**
2021-22	2.19	2.07	2.02	2.17	2.11
2020-21	2.13	2.16	2.17	2.24	2.18
2019-20	1.97	1.90	1.80	2.10	1.94
2018-19	1.93	1.80	1.86	2.08	2.10
2017-18	2.27	2.11	2.01	2.02	2.10
2016-17	2.52	2.40	2.19	2.52	2.41
2015-16	2.74	2.52	2.42	2.65	2.58
2014-15	2.24	2.77	2.69	2.90	2.65
2013-14	1.86	2.35	2.31	2.39	2.23
2012-13	2.07	1.90	1.91	1.80	1.92
2011-12	2.71	2.48	2.25	2.16	2.40
2010-11	3.11	3.37	3.26	3.00	3.19
2009-10	2.96	2.32	1.82	1.79	2.22
2008-09	1.74	1.66	2.18	2.26	1.96
2007-08	–	–	–	2.36	2.36
2006-07	–	–	–	2.87	2.87
2005-06	–	–	–	2.30	2.30

** Data not available due to merger of Exide Life Insurance Company Limited with HDFC Life Insurance Company Limited effective from HDFC the end of 14th October 2022.

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.

Exide 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 Exide Life Insurance

Exide life insurance follows a simple and hassle free claim settlement process.
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Claim settlement ratio of Exide Life Insurance

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Exide Life Insurance Solvency Ratio FAQs

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