National Insurance Company- a state-owned insurance company is likely to list by March 2018. This state-owned general insurance company has already received an in-principle approval from the Insurance Regulatory and Development Authority of India. This company may need a higher amount of funds as compared to others.
The Insurance Regulatory and Development Authority of India made it easier for Indian insurance companies to launch initial public offerings (IPOs) and for state-owned insurers to privatize. This has led to the IPOs of four private and two state-owned insurers over the past 14 months. The IPOs of three more state-owned insurers (United India Insurance, National Insurance, and The Oriental Insurance) are scheduled for 2018.
K Sanath Kumar, chairman and managing director, National Insurance Company, said: “We are hopeful of getting listed by March 2018 and working towards it. We will need an adequate amount of funds to support outgrowth path.”
When it comes to the general insurance industry, ICICI Lombard General Insurance and New India Assurance got listed recently. State-owned reinsurer General Insurance Corporation of India (GIC Re) was also listed in October.
National Insurance, the renowned insurance company that had its solvency drop to below 1.5, was able to bring it back to the minimum required level of 1.5. The solvency was taken up to 1.9 by the reduction in exposure to loss-making group health cover, re-pricing of health and motor products as well as lower subordinate debt.