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Ashok K. Roy, Chairman and Managing Director of General Insurance Corporation of India, on Friday said that the general insurance companies in India will find it difficult to get themselves listed on stock exchanges as they are yet to achieve a turnaround.
“Today, none of the insurance company can get listed because none of them has turned around. It will take some more time for these companies to be able to do that (list themselves),” Roy said at an interactive session on insurance organised by the Indian Chamber of Commerce here on Friday.
The Insurance Regulatory and Development Authority, had, in September last year, come out with draft regulations for general insurance companies to raise capital through public issue of shares.
Once firmed up, the norms could pave the way for the Union Government to shed stake in state-owned general insurers.
As suggested by the draft regulations, a company can come out with a public issue on completion of 10 years from the date of commencement of its business. According to industry insiders, it was quite difficult to adhere to these norms and go ahead with the listing process.
"Today insurance companies are losing money on underwriting. May be in the next one-to-two years, once the market improves then they might be able to do this (listing)," Roy said.
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