United India Insurance chief expects PSU insurers’ merger by March 2019

United India Insurance chief expects PSU insurers’ merger by March 2019

Context:

At the National Insurance-ASSOCHAM Summit, Chairman of United India Insurance Co. Ltd. has said that the proposed merger of three public sector insurance firms may be completed by early 2019.

Background:
Finance Minister Arun Jaitley in his Budget speech had proposed a merger of three general insurers — National Insurance Co. Ltd., United India Insurance and Oriental Insurance Company Ltd.

Advantage of the merger:

• There are a lot of operational advantages and savings that will accrue from this proposed merger
• The merger is expected to create a stronger entity to fetch better valuations at the time of listing.