United India Insurance may be first up for sell-off

United India Insurance could be the top choice for privatisation as the government initiates discussions on plans to sell a general insurance company.

According to sources, the Centre is initiating work on the privatisation of a public sector general insurer.

“United India Insurance is being seen as the first candidate for privatisation in the general insurance sphere. The Centre could go in for an Air India-kind of stake sale, “said a person close to the development.

While discussions have already started on the privatisation of a general insurance company, a formal proposal is yet to be formulated.

“Given the financial health of the three PSU general insurers, it is essential that the government takes steps. A proposal is likely to be finalised in the coming months, “said the source.

The Centre has already completed the initial public offer of Life Insurance Corporation of India and is working on the stake sale in IDBI Bank, the source further noted, adding that the general insurance space will be the next focus area.

In Budget 2021-22, Finance Minister Nirmala Sitharaman had announced that, other than IDBI Bank, the Centre proposes to take up the privatisation of two public sector banks and one general insurance company in FY22.

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