The investment exposures of key insurance
players have been hit by ratings downgrades. These downgrades have been to the tune of Rs 33,847.7 crore over the past one year. The key companies include the listed insurance
companies as well as state-owned behemoth Life Insurance
Corporation (LIC). Exposure of HDFC Life to YES Bank
is through AT-1 bonds, which may be written off according to the restructuring scheme for YES Bank, proposed by the Reserve Bank of India. The overall YES Bank
exposure in non-linked account for listed insurers stands at Rs 180 crore for SBI Life, Rs 75 crore for ICICI prudential, Rs 1,520 crore for Max Life, Rs 130 crore for HDFC Life and Rs 8,000 crore for LIC. Meanwhile, the corresponding figures for linked fund of top insurers are Rs 190 crore for SBI Life, Rs 70 crore for ICICI Prudential, Rs 480 crore for Max Life, Rs 70 crore for HDFC Life, and Rs 320 crore for LIC.