Kotak Mahindra Bank announced on Thursday that its life insurance arm is expected to incur a loss of up to ₹275 crore for the quarter ended June 2021. The company said, the number of claims have increased due to high fatalities during the second wave of COVID-19 pandemic.
The company said in its regularity filing, “The second wave of the pandemic led to an unprecedented increase in fatalities in the country and consequently death claimed being reported to the company from May 2021.” Kotak Mahindra Life Insurance Company said in a regulatory filing.
“Forgoing extraordinary development and its potential impact was discussed at the meeting of our board on June 16. ”
In view of these Covid-related development we estimate claims for quarter ending June 21, 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 ended June 2021 in the estimated range of ₹225-275 crore on shareholder’s account,” it added
The company said the provisioning going forward will depend on the trends in mortality.
“The company continues to have a strong capital and solvency position,” the private insurer said.
Kotak Mahindra Life Insurance Company said the foregoing extraordinary development and its potential impact were discussed at a meeting of its board on June 16, 2021.
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