State-owned general insurer New India Assurance which is the largest general insurer has received a cabinet nod for listing on the exchanges. G Srinivasan, CMD, New India Assurance talks to M Saraswathy about their plans.
State-owned general insurer New India Assurance which is the largest general insurer has received Cabinet nod for listing on the exchanges. G Srinivasan, CMD, New India Assurance talks to M Saraswathy about their plans:-
Q: What is the timeline you have set for the initial public offering? Will you be the first to list?
A: We hope to list in the next 6-8 months. Possibly, we could be the first one to list.
Q: How significant is this for the company?
A: It is a good development because it creates a good brand image for the general insurance industry among the public. The profile of insurance industry is not very well known among the people in this country.
For us, it will lead to better corporate governance, transparency and also lead to sharing of the company’s prosperity with the retail shareholders. Also, employees will also get an opportunity to have a stake in the company’s shareholding.
Further, this should also motivate other general insurers to list in due course.
Q: High losses due to claims have been a source of worry for general insurers. What would be your focus on this front before you hit the market?
Having a lower combined ratio (ratio of claims, expenses versus premium collected) has been a focus for us. We would look to bring down the combined ratio, regardless of the IPO.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.