Dhaka, Bangladesh (BBN) – Bangladesh Insurance Association (BIA) will send letters to 14 insurance companies to float initial public offerings (IPO) as soon as possible.

“The letters would be dispatched on Sunday to the companies to remind them to go public or they would have to face new rules and regulations,” BIA Chairman Sheikh Kabir Hossain was quoted by the Financial Express (FE), a local newspaper, as saying.

Among the 14, eight non-life companies are — Meghna Insurance, Bangladesh National Insurance, South Asia Insurance, Islami Commercial Insurance, Express Insurance, Crystal Insurance, Union Insurance and Desh Insurance.

The six life insurance companies are — Homeland, Sunflower, Padma, Sunlife, BAIRA and Golden Life Insurance Company.

Under the new insurance act of 2010, insurance companies need BDT 300 million and BDT 400 million paid-up capital for life and non-life insurance companies respectively to float IPOs.

But those 14 insurance companies can apply as per earlier requirements, be it life or non-life, at BDT 75 million minimum paid-up capital for an insurance company to float IPO.

Currently, a total of 44 insurance companies with 504,819,653 shares are listed with the Dhaka Stock Exchange (DSE).

BBN/SSR/AD-23Sept11-7:37 pm (BST)