Three General Insurance Companies’ Share Capital Increased By the Government

Three public sector general insurance businesses – National Insurance Company Limited, Oriental Insurance Company Limited, and United India Insurance Company – have had their authorised share capital increased by the government. This will allow for a capital inflow of Rs. 5,000 crore into these businesses.

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Key Points:

• The permitted capital for National Insurance will now be 15,000 crore (1,500 crore shares with a face value of 10 apiece), up from the current 7,500 crore, according to a notification released by the Finance Ministry (1,500 crore shares with a face value of ten each).
• Oriental Insurance would have a market capitalization of 7,500 crore (750 crore shares with a face value of ten rupees each), up from 5,000 crore (500 crore shares with a face value of ten rupees each).
• United India Insurance’s permitted capital has been increased to Rs 7,500 crore.
• United India Insurance’s authorised capital has been raised from 5,000 crore (500 crore shares with a face value of 10) to 7,500 crore (750 crore shares with a face value of 10).
• Finance Minister Nirmala Sitharaman announced in her FY 2018-19 Budget speech that three public sector general insurance companies, National Insurance Company Ltd., United India Assurance Company Limited, and Oriental India Insurance Company Limited, would be merged into a single insurance entity and then listed.

Important Takeaways:

• Finance Misiter: Nirmala Sitharaman

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