National Insurance gearing up for share sale


National Insurance gearing up for share sale

Kolkata, May 26 (PTI) Public sector National Insurance Company (NIC) is gearing up for its maiden share sale either through strategic divestment or initial public offer (IPO).

"NIC is owned fully by the government. We are gearing up for a possible strategic divestment by the government or an IPO. It is a decision which will be taken by the government," company CMD K Sanath Kumar said.

The company requires capital for future and also for meeting the solvency requirements as per IRDA guidelines, he said.

The stake sale process would possibly start soon and the entire exercise was expected to be completed this financial year, he told reporters on the sidelines of an event here today.

Talking about performance of the company, he said motor and health verticals, which constitute 75 per cent of the business, were making losses.

The company, he said, was making profits from the investments of premium income made as per IRDA norms.

The four public sector insurers - NIC, Oriental Insurance, New India and United India had floated a TPA for the health vertical, he said.

"Health Insurance TPA Limited will ultimately be the common arm for the four companies in future", he said.

NIC's profits during the last financial were likely to take a dip as compared to the previous fiscal, he added.

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