Beginning next financial year life insurance companies will come out quarterly financial disclosures. These disclosures are seen as a prelude to several life insurance companies coming out with initial public offerings (IPOs).

The Insurance and Regulatory Development Authority (Irda) initially wanted to make quarterly public disclosure by insurers mandatory by November 1, 2009.

In the first week of October 2009, Irda had come out draft norms for public disclosure by insurance companies.

"Insurance companies have sought more time to compile details so it is likely that beginning next financial year, companies will come out with quarterly disclosures," said a senior official of Irda.

The Life Insurance Council had written to Irda to defer implementation of norms for quarterly public disclosures from insurance companies because insurance companies needed some time to compile all the details, as the information will have to be provided regularly in a periodic manner. They especially needed more time to collect data for previous years.

The council had also asked regulator to frame separate disclosure guidelines for insurance companies who wish to list and those who do not want to list their companies on stock exchanges.

The industry has been pressurising the regulator to come out with IPO guidelines because some companies want to dilute stakes, hence the need for additional disclosures. The council has also requested the regulator to have a relook at the level of public disclosures provided by the insurance companies.

In its directive for public disclosure, Irda had said since several companies will be completing the 10year period after which they may be allowed to go for an IPO, it is essential that the investors are fully aware of the company's profile, financial performance, financial position, risk exposure, corporate governance and management of the insurance companies well before the companies go for an IPO. The data shall preferably be available for at least a period of four-five years in order to judge the performance of the companies.

Until now, the insurers were making most of their business statistics and investment details available to the regulator under yearly disclosures. The new guidelines propose the insurers to make quarterly, half-yearly and annual disclosures to the public.