Government Pushes for Profitability in Public Sector Insurance Companies

The finance ministry has directed state-owned general insurance firms to prioritize profitability over revenue growth. Following a significant capital infusion, these companies have shown improved financial performance. The ministry aims to further enhance operations by addressing staffing issues and exiting loss-making segments such as motor and health insurance.

The finance ministry has directed state-owned general insurance companies to prioritize profitability over merely chasing top-line revenue growth.

Recently, the government infused Rs 7,250 crore into three public sector insurers: National Insurance Company Limited, Oriental Insurance Company Limited, and United India Insurance Company.

'We have been closely monitoring their performance, and improvements are evident,' said Financial Services Secretary Vivek Joshi. 'We will continue to keep an eye on their progress this year.'

(With inputs from agencies.)