EY to advise on formation of mammoth Indian insurance company

18 December 2018 Consultancy.in

Global professional services firm EY has been selected to offer its consulting services on a large-scale merger of three insurance entities in India. The move was proposed in this year’s budget, and involves the merger of the National Insurance Company, Oriental Insurance Company and United India Insurance Company. 

The government made the deicision to merge the three entities in the budget released earlier this year, following which a number of consulting firms made bids to win the lucrative contract to advise on the move, motivated by the lucrative nature of the contract that involves major insurance entities.

National Insurance Company, Oriental Insurance Company and United India Insurance Company have a cumulative premium value of more than Rs. 41,000 crore, generated through the sales and marketing of over 200 products and service models in the insurance domain.

The market share of the three entities stands at 35%, while the collective net worth of the three stands in excess of Rs. 9,000 crore. The merger of the three firms also generates a mammoth operation across the country, which will expectedly operate out of more than 6,000 offices across India, employing approximately 44,000 people.

EY to advise on formation of mammoth Indian insurance company

After a period of consideration, Big Four accounting and advisory firm EY has been selected as the advisory body for the merger, a contract that involves responsibility over a number of crucial functions. Over the upcoming period, EY will supervise the management of all three entities to ensure a smooth transition.

In addition, EY will offer support a number of tasks, such as making crucial changes to the overall structure of the new organisation, an assessment and optimisation of the available human resources, solving operational hurdles, as well as helping the new organisation remain compliant with the regulatory framework.

The contract lasts until the new organisation has been established and has attained a degree of operational stability. The entire process is expected to conclude within the ongoing fiscal year, following which the new entity will be the largest non-life insurance company in the country with a value of over 1.2 lakh crore.

The move comes at a time when the investment levels for the insurance sector in India are far exceeding the revenues, which has necessitated the merger. EY has been the go to firm for a number of major public sector contracts in India recently, particularly those involving restructuring

More on: EY
India
Company profile
EY
EY is not a India partner of Consultancy.org
Partnership information »
Partnership information

Consultancy.org works with three partnership levels: Local, Regional and Global.

EY is a Local partner of Consultancy.org in Netherlands.

Upgrade or more information? Get in touch with our team for details.