Digit General Insurance Debt To Equity Ratio

What this measures

Total borrowings (debt) as a multiple of Net Worth (equity). Measures financial leverage. A higher ratio means the insurer has taken on more debt relative to its capital base, increasing financial risk. Most well-capitalised insurers carry low D/E ratios.

Note: NL-20 analytical ratios. A ratio of 0 means no borrowings. Insurance regulation limits leverage, so high D/E is uncommon for licensed Indian insurers.