United India Insurance raises Rs.900 cr through NCDs

United India Insurance has raised Rs 900 crore through subordinated debt to boost solvency capital, which is below the mandated regulatory capital requirement.

The insurer has raised funds at 8.25 per cent for a 10-year period with a call option after five years, which will help the insurance company shore up solvency ratio to 1.40, against the necessary 1.5.

“We have raised alternate capital in the form of non-convertible debenture at 8.25 per cent, with a call option after 5 years with a tenor of 10 years,” said MN Sarma, the managing director of United India Insurance. “This will help in improving the solvency. This, along with quota share treaty, underwriting discipline, we are likely to touch 1.7 times.”