FinMin says no plan to take general insurance companies public

MUMBAI: Even as the new law has an enabling provision for allowing five public sector to go public, the government has no plans at present to dilute its stake in them.

The new Insurance Act allows the government to disinvest its stake in five — New India Assurance, United India Insurance, National Insurance, Oriental Insurance and sole reinsurer GIC Re.

“All the four state-owned general insurance companies are well-capitalised and they don’t need capital through IPOs,” chairman and managing director of a public sector general insurance company said.

Analysts believe the government which has disinvested in all the state-owned banks may exercise the same option for state-owned general insurers some time later.

Even as the new insurance law has an enabling provision for allowing five public sector general insurers to go public, the government has no plans at present to dilute its stake in them.

 

 

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