Proposed merger of three state-owned general insurers – National Insurance, United India Insurance and Oriental India Insurance – will help in effective use of infrastructure and improve solvency margins, Finance Ministry said in Rajya Sabha.
The three companies together had a market share of 34.73 per cent in 2016-17. While United India Insurance and Oriental Insurance reported loss during the year, the third company posted decline in profit.
In a written reply to Rajya Sabha on March 20, Minister of State for Finance Shiv Pratap Shukla said the three companies will be merged into a single insurance entity and subsequently listed.
"The merger is expected to lead to effective utilisation of infrastructure and improved solvency margin," he said.
The replies to questions in Rajya Sabha on Tuesday were released today.
Finance Minister Arun Jaitley had announced about the merger of the three insurers in his Budget speech on February 1.