INSURANCE COMPANIES TO HIT THE MARKET WITH IPO -

GIC (GENERAL INSURANCE CORPORATION OF INDIA) & SBI LIFE INSURANCE COMPANY LTD

IRDAI (i.e. Insurance Regulatory and Development Authority of India) in Aug, 2016 has filled draft guidelines for compulsory listing of all insurance companies in India. As per the guidelines insurance companies having completed 8 years of operation under general and reinsurance segment and 10 years of operation under Life insurance segment shall go for mandatory listing on the stock exchanges.

India has a total count of 55 insurance companies in India, out of this count GIC i.e. General Insurance Corporation of India is the only reinsurance company, while there are 30 non – life insurance companies and 24 life insurance companies as per IRDAI records.

(Read – Guidelines for Listed Insurance Companies, 2016) / (List of Registered IRDAI Insurance companies in India)

1. GENERAL INSURANCE CORPORATION OF INDIA LIMITED (I.E GIC):

GIC was formed under General Insurance Business (Nationalization) Act, 1972 (GIBNA), in year 1972. GIC was formed for the purpose of superintending, controlling and carrying on the business of general insurance, and was formed as private company with limited shareholding. In Nov, 2000 with formation of IRDAA Act , 1999 over GIBNA GIC was re-notified as the Indian Reinsurer and through administrative instruction, its supervisory role over the four subsidiaries (The New India Assurance Company Ltd, National Insurance Company Ltd, Oriental Insurance Company ltd and United India Insurance Company Ltd) was ended and they ceased to be the subsidiaries of GIC with effect from 2003.

Thus GIC is a largest and a sole Reinsurance Company in India Wholly owned by Government of India. GIC with its successful business operation has completed 45 years in the insurance segment. 

GIC displays as steady and growing financial performance since inception-

1. Premium has grown from Rs. 2438 crs in 2002 to Rs. 26313 Crs in 2017
2. Profit after Tax has grown from Rs. 307 Crs in 2002 to  Rs. 2857.8 crs in 2017
3. Total assets of GIC stand at Rs. 97079 crs compared to 10379 Crs in 2002.

GIC having completed 45 years, following the IRDAI guidelines has filled for IPO under SEBI on 8 August, 2017. GIC  IPO is a combination of Fresh issue of 17,200,000 shares and offer for sale from promoters of 107,500,000 shares. GIC plans to raise around 10,000 crs through IPO.

(Read – GIC IPO DRAFT)

2. SBI LIFE INSURANCE COMPANY LIMITED :

SBI Life Insurance Company Ltd , was incorporated in year Oct, 2000. SBI Life is a Joint Venture among the largest Public sector bank i.e State Bank Of India (SBI) – 70% stake & Leading global insurance company BNP Paribas Cardif – 26% stake. SBI Life Insurance is one of the leading insurance company of India.

SBI Life displays a growing financial performance over the years –

1. Premium earned has increased from Rs. 10345 crs in 2013 to Rs. 20852 Crs in 2017
2. Profit After Tax has increased from Rs. 630 Crs in 2013 to Rs. 954 Crs in 2017.
3. Total Assets has increased from Rs. 49568 Crs in 2013 to Rs. 93673 Crs in 2017.

SBI Life having completed its 17 years in Life insurance segment have filled for IPO under SEBI on 18 July, 2017. SBI Life IPO is a pure offer for sale from its Promoters i.e. SBI – offering 80,000,000 shares and BNP Paribas Card if – offering 40,000,000 shares. SBI life insurance company Ltd has got approval from IRADAI to raise Rs. 7000 crs through IPO.

(Read – SBI IPO DRAFT)

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