[ad_1]
New Delhi: Finance ministry would consider capital infusion in three loss-making public sector general insurance companies based on their financial performance of nine months. The infusion, if required, would be made in the fourth quarter of the current financial year, sources said.
According to sources, the finance ministry last year asked three insurers – National Insurance Company, Oriental Insurance Company and United India Insurance Company – to chase profits rather than sales and underwrite only good proposals.
The financial review would give some idea about the impact of restructuring initiated on the profitability numbers and solvency margin, sources said. The solvency margin is the extra capital companies must hold over and above the claim amounts they are likely to incur. It acts as a financial backup in extreme situations, enabling the company to settle all claims. Last year, the government provided Rs 5,000 crore capital to the three insurers. agencies
According to sources, the finance ministry last year asked three insurers – National Insurance Company, Oriental Insurance Company and United India Insurance Company – to chase profits rather than sales and underwrite only good proposals.
The financial review would give some idea about the impact of restructuring initiated on the profitability numbers and solvency margin, sources said. The solvency margin is the extra capital companies must hold over and above the claim amounts they are likely to incur. It acts as a financial backup in extreme situations, enabling the company to settle all claims. Last year, the government provided Rs 5,000 crore capital to the three insurers. agencies
#Financial #Performance #Government #infuse #funds #PSU #nonlife #companies
