New phase in financial sector

IPOs by insurance companies have many benefits

The successful initial public offering (IPO) of state-owned General Insurance Corporation of India (GIC Re) marks a new phase in the financial sector. The national re-insurer’s large IPO raised more than the targeted Rs 11,300 crore. It is the first public sector undertaking (PSU) in insurance to float an IPO, and only the fourth insurance firm to seek a listing. A few more insurance IPOs are in the pipeline and by the time this financial year ends, insurers will be much better-represented on the bourses. This is a welcome development for several reasons. These companies have long histories and good