The government expects to complete the merger of three state-owned general insurance companies in 2019-20.
The merger of National Insurance Company, United India Insurance Company and Oriental India Insurance Company was first announced in the 2018-19 Union Budget and the government intended to complete the process in current fiscal itself.
However, as per the interim budget document 2019-20 released on Friday, the merger is under process and will be completed by the next financial year as various steps are being taken.
As on Mar. 31, 2017, the three companies together had more than 200 insurance products with a total premium of Rs 41,461 crore and a market share of around 35 percent. Their combined net worth is Rs 9,243 crore with total employee strength of around 44,000 spread over 6,000 offices.
Initial estimates suggest that the combined entity formed after the merger will be the largest non-life insurance company in India, valued at Rs 1.2-1.5 lakh crore. A consultant has been shortlisted to advise on the proposed merger, said a person privy to the development.
The consultant, appointed on the basis of the bid floated last year in June, is expected to advise on organisational restructuring, rationalisation of human resources, management of operational issues, regulatory and compliance issues.
In 2017, New India Assurance Company and General Insurance Corporation of India were listed on bourses.
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