The government’s plan to merge the three unlisted public sector general insurance companies (PSGICs) – National Insurance Company, United India Insurance Company and Oriental Insurance Company – is expected to create a giant insurer entity.
The three PSGICs, which along with New India Assurance received Cabinet approval in January 2017 to get listed on the stock exchanges, had initiated the process of tapping the capital markets.
The GDP of the unlisted three PSGICs put together amounted to Rs.41,462 crore in FY2017. Collectively, they accounted for 32 % of the GDP of general and health insurers in FY2017.
K Sanath Kumar, Chairman-cum-Managing Director of Kolkata-headquartered National Insurance Company, said that as a single entity, the merged company would emerge stronger and its valuations improve. United India Insurance Company and Oriental Insurance Company are headquartered in Chennai and Delhi, respectively. The four PSGICs collectively accounted for 48 % of the GDP of general and health insurers in FY2017.
