Capital infusion in 3 state-owned insurers 'credit positive': Moody's

It further added that, the government's goal of listing the companies on the stock market will become feasible only after this

The Rs 12,450-crore capital injection in three state-run insurance companies is "credit positive" as their capital had been significantly depleted over the last few years, Moody's Investors Service said on Thursday.

Last week the Union Cabinet had decided to put on hold the merger of National Insurance, The Oriental Insurance and United India Insurance and approved a Rs 12,450 crore capital infusion into these three general insurers.

"The capital infusion is credit positive for the insurers, which are among the largest non-life companies in India's insurance market, because their capital has been significantly depleted by several loss-making underwriting years and significant top-line