Explained: Why private insurance companies in India are coveted buys

By chasing profit over rapid expansion, companies have conserved capital, making them attractive for potential buyers

Among the list of 23 Indian life insurers, Reliance Nippon Life Insurance Company (RNLI) can be considered fairly middle-of-the-road. It does not figure among the top 10 in terms of premium underwritten. Yet, as the fallout of the bankruptcy of Reliance Capital, the holding company of the insurer shows, there is a veritable dogfight for the insurer. Nippon Life, the existing 49 per cent shareholder, wants to become the majority owner while the Aditya Birla Group wishes to merge the company with its own venture.

This week, the lenders to Reliance Capital have said they are not willing to liquidate