News Non-Life08 Nov 2019

India:State-owned general insurers lobby for funds

08 Nov 2019

The three public-sector unlisted general insurance companies which are slated to be merged have urged the government for funds for them to recapitalise.

According to rough estimates, the need for immediate recapitalisation is at least INR20bn-30bn ($282m to $423m) in each of the companies, while the collective requirement is close to INR120bn-130bn, reported Business Standard.

The three insurers are National Insurance, United India Insurance and Oriental Insurance.

According to top officials of two public-sector general insurers, the companies have stressed to the Department of Financial Services the need for immediate recapitalisation in order for them to meet the regulatory solvency ratio and write off losses.

In the February 2018 Budget, the government had announced a plan to merge the three public-sector general insurance firms and to list the merged entity subsequently.

However, there has been little progress on the merger since, even as the financial health of the firms deteriorated.

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