Private sector lender Kotak Mahindra Bank on Thursday said its life insurance arm expects to incur a loss of up to Rs 275 crore for the quarter ended June 2021 due to high fatalities in India during the second wave of COVID-19.
"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 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.
Kotak Life Insurance is one of the fastest growing insurance companies in India, covering over 30 million lives nationwide (as on September 30, 2020).