Kotak life insurance has a solvency ratio of 2.73 as of March 2022. Solvency ratio is a crucial factor to consider while choosing an insurer. IRDAI publishes the solvency ratio of Kotak life quarterly (i.e. June, September, December and March) in their annual reports.
List of Topic Covered
Solvency Ratio of Kotak Life Insurance from 2006 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 Kotak life insurance on a quarterly basis.
| Financial Year | June | September | December | March | Average Solvency Ratio |
| 2022-23 | 2.72 | 2.79 | 2.88 | 2.83 | 2.81 |
| 2021-22 | 2.57 | 2.61 | 2.66 | 2.73 | 2.64 |
| 2020-21 | 3.00 | 3.00 | 3.01 | 2.90 | 2.98 |
| 2019-20 | 3.02 | 3.06 | 3.04 | 2.90 | 3.00 |
| 2018-19 | 3.11 | 3.10 | 3.10 | 3.02 | 3.08 |
| 2017-18 | 3.04 | 3.08 | 3.08 | 3.05 | 3.06 |
| 2016-17 | 3.13 | 3.04 | 3.06 | 3.00 | 3.06 |
| 2015-16 | 3.21 | 3.16 | 3.20 | 3.11 | 3.17 |
| 2014-15 | 3.06 | 2.98 | 3.01 | 3.13 | 3.05 |
| 2013-14 | 3.11 | 3.12 | 3.16 | 3.02 | 3.10 |
| 2012-13 | 5.61 | 5.54 | 5.51 | 5.21 | 5.47 |
| 2011-12 | 2.85 | 3.04 | 3.04 | 3.06 | 3.00 |
| 2010-11 | 2.75 | 2.69 | 2.61 | 2.67 | 2.68 |
| 2009-10 | 3.02 | 3.07 | 3.05 | 2.79 | 2.98 |
| 2008-09 | 1.85 | 2.31 | 2.61 | 2.69 | 2.37 |
| 2007-08 | – | – | – | 2.41 | 2.41 |
| 2006-07 | – | – | – | 1.64 | 1.64 |
| 2005-06 | – | – | – | 1.80 | 1.80 |
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.
Kotak 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 Kotak Life Insurance
Kotak life insurance follows a simple and quick claim settlement process.
Know more >
Claim settlement ratio of Kotak Life Insurance
Kotak Life Insurance Claim Settlement Ratio Trend from 2006 to 2023 >
Kotak Life Insurance Solvency Ratio FAQs
Kotak life insurance has a solvency ratio of 2.73 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 Kotak 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.