Government mulling merger of 3 public sector general insurers, says report

The government is looking to take the acquisition route for the three public sector general insurance companies, reported The Times of India, citing sources. The final call regarding the move that comes as part of the government’s consolidation exercise will be taken by the new government, it added.

“Various options were discussed. Whether it is going to be acquisition or merger — the decision will be taken by the new cabinet,” an official aware of the development was quoted as saying in the report. The report also added that the department of investment and public asset management (Dipam) had met earlier to discuss the future course for the companies.

The development comes as the NDA government has already discussed merging the companies as a strategy to improve their financial health, the report said. Earlier, Finance Minister Arun Jaitley had said in his budget speech that National Insurance, United India Insurance and Oriental Insurance would be merged and listed, said the report.