India: 2nd state-owned general insurer gets regulatory nod for IPO
Source: Asia Insurance Review | Jan 2018
The IRDAI has given its in-principle approval to the government-owned National Insurance Company to list its shares, as the insurer has strengthened its balance sheet and improved solvency margins.
Kolkata-based National Insurance will become the second state-run general insurer to list after New India Assurance. National Insurance approached IRDAI for listing approval in October 2017, reported The Economic Times.
“We have received in-principle approval from the regulator to list the company and should be hitting the market by the end of this financial year or the early part of the next financial year,” said Mr K Sanath Kumar, Chairman of National Insurance. “The price and percentage dilution will be worked out by the ministry.”
The state-run insurer’s solvency margin rose to 1.90 from 1.26 in the previous year.
A 15% divestment of National Insurance could fetch the government INR37.5 billion (US$583 million), stock analysts estimate. The company is valued at an estimated INR250 billion.
ICICI Lombard became the first general insurer in India to go public when it listed in 2017. Another government-owned insurance-related entity, GIC Re, was listed in October 2017. A