India: State-owned general insurers move a step closer to merger
Source: Asia Insurance Review | Mar 2020
On 12 February, India’s union cabinet gave its in-principle approval to inject INR25bn ($351m) into three public sector general insurance companies. The capital infusion in these companies takes place ahead of their proposed merger by the end of next month.
The three insurers are Oriental Insurance, National Insurance and United India Insurance.
According to a report by Press Trust of India, Union Minister Prakash Javadekar said the capital injection was approved in light of the critical financial position and breach of regulatory solvency requirements of the general insurers.
The government budget presented on 1 February for the financial year starting on 1 April sets aside INR69.5bn for recapitalisation of the three general insurers. A