The central government's plan to merge three state owned general insurers has been shelved.
Officials say that just merging the three companies will be a time consuming process, taking more than a year, reports Business Standard. The original plan was to merge the trio— National Insurance, Oriental Insurance and United India Insurance— and then list the merged entity on the bourses.
Meanwhile, the central government is planning to reduce its stake in GIC Re and New India Assurance with offers for sale (OFS) later this year. GIC Re made its debut on the stock exchange in October 2017, while New India Assurance went public last November.
“Once the one-year lock-in period for these two companies end, we are considering an OFS for them later this year. The quantum and percentage of the stake to be sold through the exchanges are still being decided,” said a senior official.
The government currently holds 85.7% share in GIC Re and 85.4% in New India Assurance.