Profit Rule for Life Insurance IPO’s Is Scrapped

Profitability of the Life Insurance Companies was one of the important conditions for coming out with IPO’s. The profitability figure for some of the Insurance Co’s is:

The insurance regulator has scrapped the minimum three-year profitability clause for life insurers to float initial public offerings. This is good news for many companies that would have struggled for a long time for raising the capital.

With this move we can expect more and more life insurance companies to come out with IPO’s and this will give a good boost / growth to Life Insurance Company.