Thursday, May 24, 2007

GoM against listing of PSU non-life insurers

The group of ministers, deliberating on the draft amendments to insurance acts, are not in favour of allowing the four public sector non-life insurance firms to list on the bourses.

The draft amendments, prepared by the finance ministry, had proposed to amend the General Insurance Business Nationalisation Act to allow the four general insurers to raise equity capital from the market.

The finance ministry was considering to allow listing of the general insurance companies so that they have access to capital to meet solvency margins and also fund business expansion, including overseas.

However, Chaturvedi said for FY07, National Insurance, which was in the red, has shown improvement and the insurers have adequate reserves for expanding overseas operations.

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