Kotak Life Insurance expects to incur a loss of Rs 225-275 crore in the first quarter ending June 2021 because of higher Covid-related claims and an increase in mortality related provisioning on account of the second wave.
Kotak Life is a subsidiary of Kotak Mahindra Bank. The private sector bank shared an update by the life insurer on its business. It said that the second wave of the pandemic has led to an unprecedented increase in fatalities because of which there has been a rise in death claims since May. Its impact was discussed by the board of Kotak Life at its meeting.
Kotak Life said, “We estimate 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 on account of the second wave, the company expects to incur a loss for the quarter ending June 2021 in the range of Rs 225-275 crore.”