Kotak Mahindra Bank announced on Thursday that its life insurance branch is expected to suffer a loss of up to ₹275 crore for the quarter ended June 2021. The company said the number of claims had increased due to the high number of deaths during the second wave of the COVID-19 pandemic.
The company said in its regularity record: “The second wave of the pandemic has resulted in an unprecedented increase in the number of deaths in the country and, as a result, deaths allegedly reported to the company from May 2021.” Kotak Mahindra Life Insurance Company said in a regulatory filing.
“The foregoing extraordinary development and its potential impact were discussed at our board meeting on June 16. “
In view of these Covid-related developments, we estimate that claims for the quarter ending June 21 will be significantly higher than expected.
“Due to the increase in claims and increased mortality provisions resulting from the second wave, the company expects to incur a loss for the quarter ended June 2021 within the estimated range of ₹225-275 crore on the account of the shareholder “, he added
The company said future funding will depend on trends in mortality.
“The company continues to have a strong capital and solvency position,” said the private insurer.
Kotak Mahindra Life Insurance Company said the above extraordinary development and its potential impact were discussed at a meeting of its board of directors on June 16, 2021.
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