HDFC Life Insurance Solvency Ratio Trend 2005 to 2023

HDFC life’s solvency ratio surged to 209% in 2022. Solvency ratio is a very important factor to consider while selecting an insurer. IRDAI publishes the solvency ratio of all the life insurance companies quarterly (i.e. June, September, December and March) in their annual reports.

HDFC Life Insurance Solvency Ratio Trend 2005 to 2023
HDFC Life Insurance Solvency Ratio Trend 2005 to 2023

Solvency Ratio of HDFC Life Insurance from 2005 to 2023

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

Financial YearJuneSeptemberDecemberMarchAverage

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.

HDFC Life 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 HDFC Life

HDFC life insurance follows a smooth, seamless and hassle free claim settlement process.
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Claim settlement ratio of HDFC Life

Claim Settlement Ratio Trend from 2006 to 2023 >

HDFC Life Insurance Solvency Ratio FAQs

What is solvency ratio of HDFC life insurance in 2021-22

HDFC life insurance has a solvency ratio of 1.9 in 2021-22.

What is Solvency Ratio?

Solvency ratio is a measure of the insurance company’s ability to meet its short-term and long-term financial liabilities.

Which insurer has the highest claim settlement ratio in 2022?

Sahara India life insurance has the 8.8 as highest solvency ratio in 2022.

What is a Good Solvency Ratio?

As per IRDAI 1.5 is considered as a good solvency ratio.

How is the solvency ratio calculated?

Solvency Ratio = (Total Income + Depreciation) / Liabilities

This covers all the points on HDFC 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.

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