India bends sub debt rules ahead of health insurance expansion
United India Insurance (UIIC) lifted Rs9bn (America$141m) from a maiden offering of subordinated bonds, pricing the ten-year non-call five notes at eight.25%. Normal IRDA rules don't let insurers to make interest payments on such securities if their solvency ratio is below one.five. Life Insurance Corporation of India is rumoured to have purchased half of the subordinated bonds, When public-sector insurance companies picked up the remainder. It too proposed the potential of a mega IPO from the state-owned insurance sector after unveiling plans to integrate state-owned general insurers Oriental Insurance, National Insurance & United India Insurance for a listing as one entity, without indicating the timeframe. between other public-sector insurance companies, Oriental Insurance has been in talks by bankers to issue subordinated bonds.
as informed in
collected by :Lucy William
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