Cabinet approves Rs.124.5 bln capital infusion in 3 state-run general insurers

by Nidhi Bhati

The Union Cabinet has approved capital infusion of Rs.124.5 billion (including Rs.25 billion infused in 2019-20) in three public sector general insurance companies, National Insurance Company, Oriental Insurance Company and United Insurance Company. For 2020-21, the immediate financial implication would be Rs.34.8 billion as the first tranche, which will be followed by Rs.64.8 billion. This recapitalisation will make the three state-owned general insurance companies more stable and boost their capital base. Besides, the Cabinet also approved increase in authorised share capital of National Insurance Company to Rs.75 billion and that of Oriental Insurance Company and United Insurance Company to Rs.50 billion, respectively, to give effect to the capital infusion. Further, the process of merger has been ceased so far in view of the current scenario and instead, the focus shall be on their profitable growth.

References
1. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1637212
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
7.7 +1.1
Consumer Sentiments Index
Base September-December 2015
44.9 0.0
Consumer Expectations Index
Base September-December 2015
47.2 0.0
Current Economic Conditions Index
Base September-December 2015
41.2 0.0
Quarterly CapEx Aggregates
(Rs.trillion) Sep 19 Dec 19 Mar 20 Jun 20
New projects 3.17 5.24 3.49 0.59
Completed projects 0.84 1.65 1.71 0.19
Stalled projects 0.41 0.61 0.77 0.11
Revived projects 0.43 0.83 0.42 0.55
Implementation stalled projects 0.90 0.15 9.54 0.07
Updated on: 03 Aug 2020 3:28PM
Quarterly Financials of Listed Companies
(% change) Sep 19 Dec 19 Mar 20 Jun 20
All listed Companies
 Income -2.3 -1.7 -4.7 -23.8
 Expenses -3.1 -2.2 -1.7 -25.6
 Net profit -1.3 -10.7 -43.9 -14.4
 PAT margin (%) 5.3 5.1 2.6 9.0
 Count of Cos. 4,447 4,418 3,911 475
Non-financial Companies
 Income -6.3 -5.5 -8.8 -34.4
 Expenses -6.7 -6.4 -4.8 -36.0
 Net profit -13.5 -13.6 -45.5 -32.7
 PAT margin (%) 5.8 5.7 3.6 8.9
 Net fixed assets 10.4 13.1
 Current assets 5.0 3.1
 Current liabilities 5.0 4.6
 Borrowings 8.4 14.6
 Reserves & surplus 5.9 2.3
 Count of Cos. 3,337 3,309 2,991 372
Numbers are net of P&E
Updated on: 03 Aug 2020 3:28PM
Annual Financials of All Companies
(% change) FY18 FY19 FY20
All Companies
 Income 8.4 13.2 5.2
 Expenses 9.8 13.4 2.7
 Net profit -39.9 21.0 38.6
 PAT margin (%) 2.0 2.4 7.6
 Assets 10.9 9.3 10.2
 Net worth 7.5 8.5 9.4
 RONW (%) 3.5 4.4 9.0
 Count of Cos. 26,524 25,174 1,087
Non-financial Companies
 Income 8.6 13.6 0.9
 Expenses 8.7 13.8 -0.4
 Net profit -8.5 23.7 6.4
 PAT margin (%) 2.8 3.2 10.2
 Net fixed assets 7.1 5.0 23.4
 Net worth 6.1 8.4 6.5
 RONW (%) 5.7 7.0 14.1
 Debt / Equity (times) 1.0 1.0 0.6
 Interest cover (times) 2.1 2.4 5.0
 Net working capital cycle (days) 77 70 26
 Count of Cos. 21,646 20,492 792
Numbers are net of P&E
Updated on: 28 Jul 2020 9:46PM