The merger of three public sector non-life insurance companies will be deferred at least until early 2020, according to Mr Girish Radhakrishnan, chairman and managing director, United India Insurance, one of the three insurers.
“The merger process is going on,” Mr Radhakrishnan told The Hindu. “The tentative timeline is about 18 months. Most likely, the merger could take place by March 2020.”
Finance Minister Arun Jaitley in his Budget speech in February had announced the merger of United India Insurance, National Insurance and Oriental Insurance, that he visualised would be completed by 31 March 2019.
Mr Radhakrishnan said the delay was due to the complications involved in welding together three companies with different systems, styles, workforces and IT platforms. “Integrating three totally different IT platforms is a huge task,” he said.
The process of choosing financial consultants for the merger is now under way.
The merger would remove some degree of competition. The merged entity would have a market share of 35% and hence be a dominant player in the non-life insurance sector.