MUMBAI, July 3 -- Three of India's four state-owned general insurers have remained below regulatory solvency norms for the past several quarters, prompting the Reserve Bank of India (RBI) to warn that the persistent capital weakness poses a financial stability concern.

In its June Financial Stability Report, released on Monday, the RBI said the general insurers remained below the regulatory solvency ratio of 1.5 for every quarter between the fourth quarter of FY25 and the fourth quarter of FY26. While the central bank did not name the insurers, public disclosures show that National Insurance Co. Ltd, Oriental Insurance Co. Ltd and United India Insurance Co. Ltd reported negative solvency ratios during the period, indicating their liabili...