Reliance General Insurance says no new biz if capital not received soon

Mumbai: Reliance General Insurance, one of the most valuable companies among the subsidiaries of Reliance Capital, has said that it would no longer be able to undertake any new business if it fails to receive new capital soon, said people aware of the matter.

The company communicated this to Nageswara Rao Y, the administrator of Reliance Capital and also disclosed this while declaring the results of the quarter ending December 2022.

The company sought ₹600 crore capital infusion again to meet its solvency margin requirements. Lenders of Reliance Capital, undergoing corporate insolvency, have pinned their hopes on the two insurance companies to get them maximum recovery. Reliance Capital owns 100% of Reliance General Insurance and 51% of Reliance Nippon Life Insurance, and Nippon Life holds the balance 49%.RGI has said that its solvency margin, currently at 1.59 times, will slip to 1.5 times because of ageing of tier II bonds and provisions for investment in Reliance Capital and ₹30 crore tax liability.