India’s three state-owned non-life insurers, National Insurance, Oriental Insurance and United India Insurance are seeking outside consultants to advise them on their planned merger into a single company by the government, according to a Reuters’ report.
In May, the Insurance Regulatory and Development Authority of India advised the three insurers to improve their risk buffers and growth capital before they can get the green light for the merger.
The regulator is also asking the three companies to first raise their solvency margin to the required 1.5 times their liabilities.
If the merger completes, the combined entity will become the largest non-life insurer with nearly a third of the market share in India.
The companies are not publicly traded and the plan is to list the merged entity.
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