09/11/2011

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Vol II Issue 223

India: Go in e

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The Indian government has started consultations on listing public sector non-life insurance companies, with plans to float them at different times and to sell shares in them in small lots at a time. According to the Times of India, senior government officials say that the Finance Ministry has started internal discussions on listing of the four general insurance companies - New India Assurance, National Insurance, Oriental Insurance and United India Insurance. These are wholly owned by the government. The four companies are unlikely to hit the market together. Instead, listing of these companies will span a period of time. Given that New India is the largest player in the business, it is likely to be the first off the block. The listing of the state-run players will also set the stage for some of the private sector general insurance companies tapping the markets. But listing the public sector players is not going to be easy as their accounts are usually delayed. Most will also need to restructure their boards to comply with the listing norms, including a set of independent directors. Over the last few years, the government has tried to improve corporate governance standards and initiated an organisational rejig at the four general insurers.

Ins Communications Pte Ltd 69 Amoy Street, Singapore 069 888 Tel: (65) 6224 5583 Fax: (65) 6224 1091 http://w w w .asiainsurancereview .com/pages/e-w eekly.asp?country=10 Published: 11/9/2011 4:04:25 PM 2011 All rights reserved
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