Life insurance CEOs say that the NAV data of 31st March i.e. last day of financial year is essential for valuation.
Insurance regulator IRDA has issued the circular asking CEOs of life insurance companies to declare NAV on the last day of financial year which falls on Sunday, a non-business day. Insurance companies are required to declare their NAVs on daily basis except on bank holidays, exchange holidays, Saturdays, Sundays and when the corporate offices are closed.
G.N. Agarwal, CEO Future Generali Life Insurance said that the data of last day of financial year affects the valuation of entire year. The accumulated NAV data of last day of financial year i.e. 31st March, Sunday, is needed for the annual valuation. However, the possibility of fluctuation in NAV is very less as banking operation will be closed on Sunday, he added. Former Managing Director of Reliance Life Insurance Malay Ghosh said that this is the first time that insurance regulator has asked the life insurance companies to declare their NAVs on Sunday.