Those bonds, marked as subordinated debt in market parlance, offered 7.75 percent with a 10-year maturity.
Rating company
rated those papers with AA with stable outlook.
“The assigned rating takes into account Star Union Dai-ichi Life Insurance Company Limited’s (SUD Life) strong promoter profile, which enables capital, strategic, and operational support as and when required,” ICRA said in a note.
Star Union Daiichi Life is a joint venture among Bank of India holding a 28.96 per cent stake, Union Bank of India owning a 25.10 per cent stake and Dai-ichi Life International Holdings with a 45.94 per cent ownership.
SUD Life’s solvency position remained strong with a solvency ratio of 2.06 times as on March 31, 2021 compared to 2.40 times a year ago. The company’s solvency ratio was better compared to peers without any subordinated debt raise and remained above the regulatory requirement of 1.50 times, the rating company said.
The company was incorporated in September 2007 and began operations in February 2009 with capital support of Rs. 420 crore from its promoters.
The last capital infusion of Rs. 108 crore was in FY2017 as growth capital. In terms of operational support, the insurer has access to the wide branch network (14,300) of the promoter banks.
