Kotak Mahindra Life Insurance Company Ltd expects to incur a loss between the range of Rs 225 crore to Rs 275 crore in the April-June quarter due to high fatalities in India during the second wave of COVID-19, the company has said.
"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 ended June 2021 in the estimated range of Rs 225-275 crore on shareholder 's account," Kotak Mahindra Life Insurance Company said in a regulatory filing.
The company attributed the loss to high "death claims" being reported. The company said 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.
Kotak Mahindra Life said "claims, net of reinsurance", for the quarter ending June 2021, will be significantly higher than expected". It said provisioning, going forward, will depend on the trends in mortality. "The company continues to have a strong capital and solvency position," said Kotak Mahindra Life.
Kotak Life Insurance is one of the fastest-growing insurance companies in India, covering over 30 million lives nationwide (as of September 30, 2020)
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