Millennium Post

FinMin to issue Cabinet note on listing of PSU insurers soon

"Cabinet note for consultation on listing of four PSU general insurance companies will be issues in the next few weeks," sources said.

Final shape is being given to various issues including quantum of stake dilution, sources added.

Listing of PSU general insurance was announced in Budget 2016-17 by Finance Minister Arun Jaitley.

"... (proposed to) undertaking important banking sector reform and public listing of public sector general insurance and undertaking significant changes in FDI policy," he had said while unveiling Budget.

There are four public sector general insurance companies -- New India Assurance Company Ltd, National Insurance Company Ltd, Oriental Insurance Co Ltd, United India Insurance Co Ltd.

Besides, there are two specialised insurers -- ECGC and AIC -- one life insurance insurer, LIC.

Last year, the government allowed foreign insurance player to raise their stake in their joint venture to 49 per cent.

Earlier, only up to 26 per cent FDI was permitted.

There are 52 insurance companies operating in India, of which 24 are life insurance business and 28 in general insurance.
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