Indian insurance company should not exceed how much percent of paid up equity capital ?1
Answers
India's top 5 insurance companies are expected to attract upwards of $3 billion of additional foreign investment in the immediate future following the recent increase in the ceiling on permissible foreign investment from 26% to 49%. One of these, for instance (HDFC Standard Life), was itself recently valued in a publicly announced deal at $3.5 billion – which reflects an impressive trajectory for a relative young industry (outside of state owned insurers).
India currently has 52 registered insurance companies, including 24 engaged in life insurance. It is estimated that over the next five years, the industry will grow at a CAGR of 12-15% and require $8 billion of additional capital. This changing landscape presents new opportunities for strategic and financial investments, and for consolidation in the industry, in no small part driven by the regulatory regime.