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Regulator seeks fuller disclosure from insurers looking to list

This will include embedded value, details on policies, value of new business and their maturity apart from financial information

Securities and Exchange Board of India (Sebi) will seek fuller disclosure from companies looking to list on stock exchanges. This will include embedded value, details on policies, value of new business, and their maturity, apart from financial information. Embedded value is the sum of the net asset value and present value of future profits of an company. Net asset value is assets minus liabilities.

A official said, "Any company planning to list and approaching with draft prospectus will have to adhere to Sebi’s strict disclosure norms. In case of firms, will insist on declaration of embedded value, policy maturity time table, and audit qualification, among others. disclosure norms have been made in consultation with Sebi." is Regulatory and Development Authority of India.

In its discussion paper on listing, had proposed to ask some companies to mandatorily list on the exchanges based on the number of years they have been in business. In its discussion paper on listing of Indian companies, said that they would issue directions for general insurers (including health and reinsurers) to take steps to get listed after completion of eight years of operations. All life insurers will have to take steps to get shares listed on completion of 10 years.

"In the run-up to the listing, all companies shall initiate steps to ensure the level of disclosure in public domain is brought up to the level of listed entities as stipulated by and Sebi. These disclosures could cover such aspects as embedded value, segment-wise lapsation of policies and contribution of profitability, among others," said Irdai.

Regulator seeks fuller disclosure from insurers looking to list
The regulator said all insurers that have already exceeded the number of years of operations to get their shares within three years from the date of issue of the guidelines. said that 32 companies in life, general and reinsurance have completed 10 years of operations. Of these, only two life insurers have applied for getting their shares listed on the stock market.

If these norms are brought out, all big life and general companies would have to get listed. In an earlier guideline on companies' listing, had said it can direct an Indian company to list on the if circumstances so warrant. It had also said that such a company should comply with the directions within one year from the date of such directions.

Apart from ICICI Prudential Life Insurance, which is to get listed on the stock exchanges, and HDFC Life-Max Life, which have signed an agreement to merge, only has stated its embedded value. SBI Life's embedded value as on March 31, 2016 stood at Rs 12,999 crore.

officials said that predictive financial information on business in the future would be a challenge, given the nature of the business. "The first quarter of a financial year is generally slow. Hence, if are to give predictive new business data, it will not be accurate," said the chief executive officer of a mid-size private life company.

At the end of July, there are 55 companies, of which 24 are in life business and 30 are in non-life business, apart from one reinsurer. In life insurance, 16 companies have completed 10 years of operation, while in general insurance, 12 have completed 10 years. In health insurance, there is only one company that has completed 10 years.

If listing is made mandatory for at least the large companies, this would mean the process of disclosure would have to begin from the next few quarters itself.

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Business Standard
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Business Standard

Regulator seeks fuller disclosure from insurers looking to list

This will include embedded value, details on policies, value of new business and their maturity apart from financial information

M Saraswathy & Shrimi Choudhary  |  Mumbai 

Sebi to seek full disclosure for listing applicants in insurance sector

Securities and Exchange Board of India (Sebi) will seek fuller disclosure from companies looking to list on stock exchanges. This will include embedded value, details on policies, value of new business, and their maturity, apart from financial information. Embedded value is the sum of the net asset value and present value of future profits of an company. Net asset value is assets minus liabilities.

A official said, "Any company planning to list and approaching with draft prospectus will have to adhere to Sebi’s strict disclosure norms. In case of firms, will insist on declaration of embedded value, policy maturity time table, and audit qualification, among others. disclosure norms have been made in consultation with Sebi." is Regulatory and Development Authority of India.



In its discussion paper on listing, had proposed to ask some companies to mandatorily list on the exchanges based on the number of years they have been in business. In its discussion paper on listing of Indian companies, said that they would issue directions for general insurers (including health and reinsurers) to take steps to get listed after completion of eight years of operations. All life insurers will have to take steps to get shares listed on completion of 10 years.

"In the run-up to the listing, all companies shall initiate steps to ensure the level of disclosure in public domain is brought up to the level of listed entities as stipulated by and Sebi. These disclosures could cover such aspects as embedded value, segment-wise lapsation of policies and contribution of profitability, among others," said Irdai.

Regulator seeks fuller disclosure from insurers looking to list
The regulator said all insurers that have already exceeded the number of years of operations to get their shares within three years from the date of issue of the guidelines. said that 32 companies in life, general and reinsurance have completed 10 years of operations. Of these, only two life insurers have applied for getting their shares listed on the stock market.

If these norms are brought out, all big life and general companies would have to get listed. In an earlier guideline on companies' listing, had said it can direct an Indian company to list on the if circumstances so warrant. It had also said that such a company should comply with the directions within one year from the date of such directions.

Apart from ICICI Prudential Life Insurance, which is to get listed on the stock exchanges, and HDFC Life-Max Life, which have signed an agreement to merge, only has stated its embedded value. SBI Life's embedded value as on March 31, 2016 stood at Rs 12,999 crore.

officials said that predictive financial information on business in the future would be a challenge, given the nature of the business. "The first quarter of a financial year is generally slow. Hence, if are to give predictive new business data, it will not be accurate," said the chief executive officer of a mid-size private life company.

At the end of July, there are 55 companies, of which 24 are in life business and 30 are in non-life business, apart from one reinsurer. In life insurance, 16 companies have completed 10 years of operation, while in general insurance, 12 have completed 10 years. In health insurance, there is only one company that has completed 10 years.

If listing is made mandatory for at least the large companies, this would mean the process of disclosure would have to begin from the next few quarters itself.

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Regulator seeks fuller disclosure from insurers looking to list

This will include embedded value, details on policies, value of new business and their maturity apart from financial information

This will include embedded value, details on policies, value of new business and their maturity apart from financial information Securities and Exchange Board of India (Sebi) will seek fuller disclosure from companies looking to list on stock exchanges. This will include embedded value, details on policies, value of new business, and their maturity, apart from financial information. Embedded value is the sum of the net asset value and present value of future profits of an company. Net asset value is assets minus liabilities.

A official said, "Any company planning to list and approaching with draft prospectus will have to adhere to Sebi’s strict disclosure norms. In case of firms, will insist on declaration of embedded value, policy maturity time table, and audit qualification, among others. disclosure norms have been made in consultation with Sebi." is Regulatory and Development Authority of India.

In its discussion paper on listing, had proposed to ask some companies to mandatorily list on the exchanges based on the number of years they have been in business. In its discussion paper on listing of Indian companies, said that they would issue directions for general insurers (including health and reinsurers) to take steps to get listed after completion of eight years of operations. All life insurers will have to take steps to get shares listed on completion of 10 years.

"In the run-up to the listing, all companies shall initiate steps to ensure the level of disclosure in public domain is brought up to the level of listed entities as stipulated by and Sebi. These disclosures could cover such aspects as embedded value, segment-wise lapsation of policies and contribution of profitability, among others," said Irdai.

Regulator seeks fuller disclosure from insurers looking to list
The regulator said all insurers that have already exceeded the number of years of operations to get their shares within three years from the date of issue of the guidelines. said that 32 companies in life, general and reinsurance have completed 10 years of operations. Of these, only two life insurers have applied for getting their shares listed on the stock market.

If these norms are brought out, all big life and general companies would have to get listed. In an earlier guideline on companies' listing, had said it can direct an Indian company to list on the if circumstances so warrant. It had also said that such a company should comply with the directions within one year from the date of such directions.

Apart from ICICI Prudential Life Insurance, which is to get listed on the stock exchanges, and HDFC Life-Max Life, which have signed an agreement to merge, only has stated its embedded value. SBI Life's embedded value as on March 31, 2016 stood at Rs 12,999 crore.

officials said that predictive financial information on business in the future would be a challenge, given the nature of the business. "The first quarter of a financial year is generally slow. Hence, if are to give predictive new business data, it will not be accurate," said the chief executive officer of a mid-size private life company.

At the end of July, there are 55 companies, of which 24 are in life business and 30 are in non-life business, apart from one reinsurer. In life insurance, 16 companies have completed 10 years of operation, while in general insurance, 12 have completed 10 years. In health insurance, there is only one company that has completed 10 years.

If listing is made mandatory for at least the large companies, this would mean the process of disclosure would have to begin from the next few quarters itself.
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Business Standard
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