Two non-life insurers approach Irda with M&A proposals

Two non-life insurance companies have approached the Insurance Regulatory and Development Authority (Irda) with proposals for mergers and acquisitions (M&A), according to Irda chairman J Hari Narayan. He, however, declined to disclose the details.

Narayan said there was no specific provision in the Insurance Act regarding M&As of non-life insurance companies. Nevertheless, no specific guidelines were currently required for the same, he added.

However, he said, there was already a provision regarding M&As of life insurance companies. Hence, their M&A proposals could be dealt with in accordance with the provisions of the Act.

Narayan said the impact of Irda’s new rules for unit-linked insurance plans would be assessed after this financial year. “Though there was a decline in the business income of insurance companies in September, as against August, it was not much. I expect the same to continue in October,” he said.