The solvency ratio of Oriental Insurance Company has been pegged at 0.69 for the year ended March 31, 2021 which was previously at 0.92, according to filings made with the National Stock Exchange (NSE).
The number was flagged in a recapitalisation advice, sent by the department of financial services in the finance ministry to the company this week.
The progressive improvement calendar laid out for the company, with the recapitalisation plans, shows it will still be short of industry benchmarks for upto four years, effectively ending any discussion on listing its shares for the foreseeable future.
The ministry has issued a cheque of Rs 1,200 crore to the company on March 28, to shore up capital.
The solvency ratio of an insurance company measures the size of its capital against the policies it has written, in other words, the risks it has covered.