Major private insurers seek time until 2027 for public listing plans

Several major private life and general insurance companies, directed to submit draft plans for public listing on Indian stock exchanges, have requested an extension from the Insurance Regulatory and Development Authority of India (Irdai) until 2027, according to sources familiar with the matter.

 

“The private insurance companies have informed Irdai they need time until 2027 to submit their public listing plans, as India will fully adopt the International Financial Reporting Standards (IFRS) 17 in 2026,” said one source.

 

Irdai has proposed implementing Indian Accounting Standards (Ind AS) 117 — the Indian equivalent of IFRS 17 — from April 1, 2026.

 

IFRS 17 replaces the older, less structured IFRS 4 and introduces a completely new framework for reporting insurance contracts — including how and when profits are recognised, liability valuation, and required disclosures.

 

IFRS 17 can substantially alter balance sheet figures, earnings patterns, and equity presentation, even for established insurers. These changes could heavily impact valuation metrics critical to a smooth and successful public listing.

 

An email sent to Irdai remained unanswered until the time of going to press.

 

In February, Business Standard reported that Irdai had asked at least 10 general and life insurance companies to submit detailed road maps for their public listing strategies by the end of that month.

 

Currently, India follows Ind AS 104, a set of accounting standards converged with IFRS 4 but adapted to local laws and conditions. Ind AS is mandatory for listed and large unlisted companies, while smaller firms continue to use the older Accounting Standards (AS).

 

The insurance regulator has also reconstituted an expert committee on the implementation of Ind AS 117 or IFRS 17, headed by the Member (Finance and Investment) of Irdai. This committee will work on steps towards effective implementation of the new accounting framework, including phase-wise timelines.

 

Another source explained that Irdai aims to enhance transparency and professionalism in the insurance industry through the listing strategy.

 

To list on an Indian stock exchange, an insurance company must meet several performance parameters. Either the company or its promoters must have at least three years of experience in the insurance sector and a positive net worth. The company must have achieved an operating profit of at least ~1 crore for two of the last three financial years and maintained positive free cash flow to equity during the same period.

 

Last year, Irdai proposed removing the requirement for Indian insurance companies to seek prior regulatory approval before listing on stock exchanges, subject to compliance with specified conditions.