SBI Life Insurance Solvency Ratio Trend 2005 to 2023

SBI life insurance has a solvency ratio of 2.05 as of March 2022. It is financially a well stable company. Solvency ratio is a very important factor to consider while selecting an insurer. IRDAI publishes the solvency ratio of SBI life quarterly (i.e. June, September, December and March) in their annual reports.

Solvency Ratio of SBI 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 SBI life insurance on a quarterly basis.

Financial Year	June	September	December	March	Average Solvency Ratio
2022-23	2.21	2.19	2.25	2.15	2.20
2021-22	2.15	2.12	2.09	2.05	2.10
2020-21	2.39	2.45	2.34	2.15	2.33
2019-20	2.17	2.20	2.30	1.95	2.16
2018-19	2.14	2.21	2.23	2.13	2.18
2017-18	2.11	2.09	2.06	2.06	2.08
2016-17	2.18	2.14	2.09	2.04	2.11
2015-16	2.10	2.15	2.16	2.12	2.13
2014-15	2.28	2.35	2.27	2.16	2.27
2013-14	2.25	2.40	2.47	2.28	2.35
2012-13	2.15	2.17	2.14	2.15	2.15
2011-12	2.20	2.14	2.13	5.34	2.95
2010-11	2.25	2.22	2.16	2.04	2.17
2009-10	2.73	2.64	2.52	2.17	2.52
2008-09	1.99	2.71	2.91	2.92	2.63
2007-08	–	–	–	3.30	3.30
2006-07	–	–	–	1.78	1.78
2005-06	–	–	–	2.9	2.9

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.

SBI 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 SBI Life Insurance

SBI life insurance follows a simple and quick claim settlement process.
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SBI Life Insurance Solvency Ratio FAQs

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