News Non-Life06 Nov 2018

India:Govt shelves merger of 3 public sector insurers

06 Nov 2018

The central government has shelved a plan to merge three public sector general insurance companies-National Insurance Company, Oriental Insurance Company and United India Insurance -- but may soon sell a stake of about 10% each in the two listed companies, GIC Re and New India Assurance, in the January-March 2019 quarter.

GIC Re and NIA were listed last year. At current market prices, the offers for sale (OFSs) in both state-run insurers could fetch the government around INR95bn ($1.3bn), reports Financial Express.

A ministerial panel headed by finance minister Arun Jaitley has recently approved the OFSs for GIC and NIA, an official said. The government currently owns 85.78% of GIC Re and 85.44% of New India Assurance.

The government had announced in the Budget for the fiscal year ending 31 March 2019 that it would merge Oriental Insurance, United India Insurance and National Insurance Company — and list the merged entity as part of its disinvestment programme. But, no progress has been made on the consolidation so far.


 

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