Insurance M&A norms to be out in 2-3 months: IRDA

Insurance M&A norms to be out in 2-3 months: IRDA
MUMBAI: The Insurance Regulatory and Development Authority (Irda) will come out with guidelines for mergers and acquisitions for the industry over the next two-three months, while the IPO norms will be out in the next 15-20 days, a senior Irda official said today.

"We have been examining the pros and cons of the mergers and acquisitions in the industry and we are sure to come out with the final guidelines within the next two to three months," Irda Member (Actuaries) R Kannan told reporters here, on the sidelines of an international conference on actuaries.

When asked about the IPO norms for insurance companies, Kannan said, "they (the initial public offering guidelines) will be out within the next 15-20 days".

Earlier this fiscal, the Anil Ambani group company Reliance General insurance had expressed its readiness to take over the Chennai-based Royal Sundaram Alliance Insurance by buying out the entire 74 per cent stake of the domestic promoter Royal Sundaram.

But when the group approached for regulatory nod, it was held back as there were no proper regulatory systems in place on the M&A norms in the insurance space.

Royal Sundaram Alliance Insurance is a joint venture between the Sundaram Group and the England-based RSA, which owns 26 per cent stake in the company.