Government plans to list non- life insurance companies as a stake sale in these companies would garner hefty amount for the government
Government is considering listing the four state owned non-life insurers - New India Assurance, National Insurance, Oriental Insurance and United India Insurance, according to a report by TOI. Divesting 10% stake from these companies will earn the government Rs 3,000 crore. The process is expected to kick off with the divestment of New India, stated the newspaper.
The underwriting margins of the non-life insurers have continued to be under pressure and have not yet stabilized. Rather than their earnings from their core non-life insurance business, it is their investments in financial securities and real estate that may fetch them better valuations.