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The Insurance Regulatory and Development Authority of India (IRDAI) is all set to finalise the takeover of Sahara India Life Insurance Company by a private insurer.
The regulator is in the final rounds of discussions with ICICI Prudential on valuations, among others, a senior IRDAI official told BusinessLine here.
An appointed actuary of ICICI Prudential is currently in talks with the Authority and a final word on the takeover is expected soon, he said. ICICI Prudential had earlier confirmed its interest in evaluating taking over policyholders’ liabilities and assets of Sahara Life and has been in talks with the regulator on the same. The policyholders’ liabilities of Sahara Life is estimated at about ₹900 crore.
In a first of its kind development in the insurance sector, IRDAI had taken over the administration of Sahara India Life Insurance on June 12, 2017, and appointed RK Sharma, General Manager, IRDAI, as administrator to manage the affairs of the insurer.
The industry is of the opinion that IRDAI had managed the situation with no damage to existing policyholders. When asked about the impact of the development, the CEO of a private life insurer said, any insurer, including ICICI Pru, will stand to gain from the distribution network of Sahara in the event of taking over the company at a ‘low’ valuation.
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