Ernst & Young Shortlisted to Advise on Merger of 3 PSU General Insurers

The renowned management consultancy firm Ernst & Young has been selected to advise on the proposed merger of the public sector general insurance companies - National Insurance Company, Oriental Insurance Company, and United India Insurance Company. The firms zeroed in on the name of EY, the popular consultancy firm on the basis of the bid floated in June 2018.

Ernst & Young is shortlisted to advise on the consolidation process. As on March 31, 2017, the three companies altogether had more than 200 insurance products with a total premium of Rs. 41,461 Crore and a market share of around 35%. The combined net worth of Oriental Insurance Company, National Insurance Company, and United India Insurance Company is Rs. 9,243 Crore with total number of employees around 44,000 over 6,000 offices.

According to the sources, EY, as consultant will play the role of offering advise on rationalisation of human resources, organisational restructuring, management of operational issues, regulatory and compliance issues. Furthermore, it is expected to assist the management of the three insurers, throughout the merger process till the new organisation is formed and set in place.