Important Points for IC 99 - Asset Management Exam
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The solvency margin maintained by insurance companies is similar to capital adequacy ratio maintained by banks.
As per IRDA Investment Regulations, life insurance companies are required to invest not less than 50% of their total investable funds in Government Securities and approved investment securities out of which investment in Central Government securities should not be less than 25% of the total investments.
Section 43 of Companies Act, 2013 explains that equity share capital with reference to any company limited by shares, means all share capital which is not preference share capital.
Section 43 further provides for equity share capital (i) with voting rights or (ii) with differential rights as to dividend, voting or otherwise in accordance with such rules as may be prescribed.
As per IRDA Investment Regulations 2013, non-life insurers are required to invest in Central Government Securities, State Govt. Securities & or other approved securities for not less than 30% of investment assets.
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