Insurance companies second largest net providers of funds to financial system as at end-Mar-25

According to a latest update from the Reserve Bank of India, with gross receivables at Rs 11.12 lakh crore against gross payables at Rs 0.91 lakh crore, insurance companies were the second largest net providers of funds to the financial system as at end-March 2025. SCBs (primarily PVBs) were the largest recipients of their funds, followed by NBFCs and HFCs. Insurance companies provided funds mostly through LT debt and equity, accounting for 90 per cent of receivables, with limited exposure to ST instruments. As of December 2024, and the previous three quarters, the aggregate solvency ratio for insurance companies remained above the prescribed threshold. The solvency ratio of the life insurance companies remained at 204 per cent, while non-life insurance companies maintained a solvency ratio of 166 per cent as of December 2024.

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