Past developments in the sector and the recent Mumbai Bench of the National Company Law Tribunal (NCLT) allowing the merger of Exide Life Insurance with HDFC Life clearly shows that companies in the sector without the requisite expertise may have to leave the business. .
To enable itself to tide over the complexities of mergers and acquisitions, the Insurance Regulatory and Development Authority of India (IRDA) has started looking for consultants who can evaluate public and private sector insurance companies. IRDA is training its officers about the method of evaluation.
Market players and analysts are of the view that the sector has ample growth potential and there are ample opportunities for entry of new companies and mergers and acquisitions (M&A) in the insurance industry.
Anand Pejawar, Deputy Managing Director, SBI General Insurance said, “Mergers and acquisitions will continue in this sector like other sectors and will see new opportunities in the future.”
He added that players with strong financials and right management practices will continue to grow for a long time.
Pejawar further added that India’s insurance landscape is vast and there is ample scope for companies to grow together.
At present there are 24 life insurance companies and 31 general insurance companies in the country.
Source: navbharattimes.indiatimes.com
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