Life Insurance Company Kotak Mahindra expects to incur a loss in the range of Rs 225 crore to Rs 275 crore on the shareholders account in the FY21Q1.
In a communication to the Kotak Mahindra Bank, the life insurer said that the second wave of Covid-19 has led to an unprecedented increase in fatalities in the country and consequently, the death claims being reported to the company from May 2021.
The company is a wholly-owned subsidiary of Kotak Mahindra Bank.
In view of the Covid-related developments, the company estimates that claims, net of reinsurance, for the quarter ending June 2021, will be significantly higher than expected.
“Due to increased claims and higher mortality related provisioning arising on account of the second wave, the company expects to incur a loss for the quarter ending June 2021 in an estimated range of Rs 225 crore to Rs 275 crore on the shareholder’s account,” Kotak Life Insurance said.
The provisioning, going forward, will depend on the trends in mortality, it said.
“The company continues to have a strong capital and solvency position.”
