The Government has revealed plans to merge the three big public sector insurance companies, United India Insurance Company, National Insurance Company and Oriental Insurance Company. All these three companies are unlisted as of now, and when they are merged into one entity, it will become bigger than the country’s largest insurance company, New India Assurance Company.
In January 2017, the cabinet had approved all the four public sector insurance companies to get listed on the stock exchanges, and they had started the process so. After the announcement made by the finance minister in the Budget 2018, the listing process will have to be stopped by the three companies. The fourth and the biggest insurance company, New India Assurance got listed in November 2017.
When the three big companies are merged into one entity, the valuation is bound to improve, and this new company will be stronger. 48% of the GDP of health and general insurers is contributed by the four public sector companies in 2017. 41% was the share of the private insurance companies, and the balance was the business done by the standalone and specialised insurance companies.