Finance ministry will review the performance of state-run PSU insurers

According to a media report the finance ministry will shortly introduce a review meeting regarding the performance of PSU insurers like National Insurance, United India Insurance and Oriental India Insurance. This meeting of review will serve as a pioneer to the planned merger of the three companies and their ultimate soaring on the stock markets. The finance ministry already told that the leading three state-run insurance companies to line up their operations. According to a finance ministry official, the firms will improve their performance and hopefully the merging procedure will be completed in the next six months. Indian government also told the Rajya Sabha that the future merger will help in efficient use of infrastructure and improve solvency margins. The three firms- National Insurance, United India Insurance, and New India Assurance will be merged into a single insurance unit and subsequently listed.  The three insurers together had a market share of 34.73 percent in financial year 2016-17, where National Insurance posted a decline in income.

You May Also Like: