Andhra Pradesh Transport department has served notices to several insurance...
Finance Minister Arun Jaitley in his budget speech had mentioned "Public shareholding in the government-owned companies is a way to ensure higher transparency and accountability. To promote this objective, the general insurance companies owned by the government will be listed in the stock exchanges."
The department of financial services is working out on the valuation of the four public sector general insurance companies, And IPO of New India Assurance Company will be the first, by early FY17. United India Insurance, Oriental Insurance Company and National Insurance company are other government-owned general insurance companies the IPOs may follow later.
The government plans to offload 10 percent stake in these four insurers. The Insurance Laws (Amendment) Act 2015 allows government insurance companies to raise money via capital market, provided the government stake doesn’t go below 51 percent.
New India Assurance reported a 31 percent growth in net profit in FY15 at Rs. 1431 Crores. Total net worth of the company is Rs, 30,391 crores with an asset base of Rs. 60,674 crores. Lack of underwriting profitability and losses in motor insurance and group insurance segments may hit valuations, experts say.