PSU general insurance companies seek capital infusion prior to merger

Public sector general insurance companies, which are slated to be merged, have sought fund infusion from the central government before the amalgamation.

According to top officials of two of the public sector general insurance firms, the companies, in their communication to the department of financial services, have highlighted the need for imminent recapitalisation to maintain the regulatory solvency ratio and wipe out losses.

According to rough estimates, the need is at least Rs 2,000-3,000 crore in each of the companies, the total collective requirement is close to Rs 12,000-13,000 crore.  

Oriental Insurance posted a net loss of Rs 142 crore