The three Insurance companies are National Insurance United India Insurance and

The three insurance companies are national insurance

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The three Insurance companies are National Insurance, United India Insurance and Oriental Insurance. The merger is pending for approval from Central Government and other Regulatory Bodies. The government has kept both the options open i.e. mergers or 6 Market Extension Two insurance companies selling the same product come together to increase their market size Product Extension Two companies involved in different but complimenatry products come together provide service Eg- Vehicle Insurance, Travel Insurance Conglomeration Two different companies come together to provide services to customers.Main motive is diversifaication Bancasurrance
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acquisitions. However, these firms need recapitalisation before the mergers as the health of these companies look bleak. For measuring the health of an insurance company solvency ratio is one of the key parameters. It determines if cash flow is sufficient to meet short-and long-term obligations. The minimum regulatory requirement is 1.5, but two companies – Oriental and National Insurance have slipped below the regulatory requirement. National Insurance reported a solvency ratio of 1.01 at the end of Q3 of FY19, against 1.53 at the end of Q2 of FY19. Oriental Insurance’s solvency ratio slipped from 1.54 in Q2 to 1.21 in Q3 of FY19. Insurance Companies Solvenc y ratio Profit Loss – Rs Cr (Up to Dec -18) Market Share - % (As of April,19) Market Share - % (As of Mar,18) National Insurance 1.01 -1177 8.04 10.55 Oriental Insurance 1.21 -634 8.42 8.69 United India Insurance 1.51 -2070 8.73 9.28 Players Profile 52.77% 14.25% 9.15% 6.35% 17.48% Premiums Market Share in Life Insurance (FY19) LIC HDFC Standard Chartered SBI Life Insurance ICICI Prudential Life Others Life Insurance Corporation of India: Life Insurance Corporation of India is an Indian government owned insurance company. It was founded on 1 September 1956 and has its headquarters at Mumbai, Maharashtra. LIC was founded as a result when Government of India passed the Life Insurance of India Act on 19 June 1956, that nationalised the private insurance industry in India. This resulted in the 7
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merger of more than 245 insurance companies and provident societies and thus created the state-owned Life Insurance Corporation of India. The current chairman of LIC is M.R. Kumar. On March 31, 2018 LIC had an employee strength of 1,11,979 out of which 24,510 were women and distributed in three categories shown below: Along with the employees, LIC also has a huge agent strength. The agents are also distributed in different categories. There are 1,537,064 individual agents, 342 corporate agents, 109 referral agents, 114 Brokers and 42 Banks to offer insurance services to the public. LIC has acquired 51% stakes in IDBI Bank, it has 1899 branches of IDBI Bank to provide insurance services. Key Products: Every individual has a different need for insurance according to his requirements. LIC India offers a diverse variety of insurances and gives opportunity to the customer to choose the optimal insurance.
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  • Spring '14
  • Insurance Sector India

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