Page 5 - Insurance Times December 2018

General Insurance

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Reliance insurance IPO Finance Ministry to offer share on sale

The Finance Ministry said it is planning to come out with a
share-sale offer of two recently listed PSU insurance compa-
nies - GIC and New India. The Department of Investment and
Public Asset Management (DIPAM) invited expression of inter-
est (EoI) from merchant bankers and selling brokers for man-
aging the offer-for-sale of GIC and NIA.

Reliance General Insurance, plans to DHFL General Insurance launches online motor cover
file fresh documents with the Sebi to DHFL General Insurance has launched a customisable online motor insurance
float an initial share sale as the regu- policy which offers customers 19 add-on options based on
latory approval for the insurer's IPO their specific needs.
is going to lapse this month, mer-
chant banking sources said. The product known as COCODrive, offers many nonstandard
add-ons such as enhanced owner, occupant and paid driver
The company failed to tap the pri- personal accident cover. It also offers personal accident cover
mary markets as lack of investors' that can go up to Rs.35 lakh. "Other add-on options include
appetite for the IPO and volatile EMI Protector and Outstanding Loan Protector for cars on
equity market conditions has forced loan, which will help in vehicle financing in case of accidents during the loan
the insurer to postpone its plans. period," the insurer said.
Sebi's approval for IPOs is valid for Additionally, apart from providing coverage across India, the product also cov-
one year, and it will expire on No- ers neighbouring countries such as Nepal, Bhutan, Pakistan, Bangladesh, Sri
vember 29 in the case of Reliance Lanka and Maldives.
General Insurance Company, accord-
ing to data available with SEBI.
SBI General posts 64% jump in H1 net profit
According to merchant banking SBI General Insurance, posted a 64.4 per cent increase in its net profit at Rs. 217
sources, the company is very keen to crore for the first half of the current fiscal when compared
come out with its IPO and will re file to Rs. 132 crore a year ago. For the six months ending Sep-
the draft red herring prospectus tember 30, 2018, the company said it has made an under-
(DRHP) with Sebi very soon.
writing profit of Rs. 37 crore when compared to an under-
The IPO comprised fresh issue of a writing loss of Rs.60 crore in the same period a year ago.
little over 1.67 crore shares by the
The gross written premium also increased by 30 per cent to Rs. 2,067 crore in
company and an offer of sale by Re-
the April to September period this fiscal, compared to Rs. 1,593 crore a year
liance Capital of 5.03 crore shares. ago. SBI General Insurance said its solvency ratio in the first half of the fiscal
The firm was planning to utilise the was 2.46, and the combined ratio 96.8 per cent. "Our profits have increased by
proceeds from the issue to augment almost 65 per cent, excluding the profit impact of one-time reinsurance ceding
its solvency margin.
in LTH," said Rikhil K Shah, CFO, SBI General Insurance.
The Insurance Times, December 2018 5