new delhi, May 9 -- The government has deferred plans to merge or privatize three public sector general insurance companies to FY27 after they posted profits, people familiar with the matter said, giving them time to notch up sustained profitability. The three companies-United India Insurance Co. Ltd, Oriental Insurance Co. Ltd and National Insurance Co. Ltd-are the weaker of the four state-owned general insurers. But they posted profits in the first nine months of FY25, a turnaround after years of losses. United India reported profits of Rs.27.45 crore, Oriental Insurance Rs.368.37 crore and National Insurance Rs.29.46 crore in the period. The fourth company, New India Assurance, is the stronger of the quartet. All three have been told to focus on profitability rather than revenue growth as the government sets out to monitor their performance for a possible decision next year. If the insurers remain profitable through FY26, options such as a merger or even privatization may be revisited, the people mentioned above said. A potential merger could involve the integration of the three entities and their subsequent amalgamation with the stronger New India Assurance. "The weaker general insurers have shown improved performance in FY25, with all three posting profits in the first nine months. If they remain profitable through all four quarters of FY26, the government may consider options next year,"the first person mentioned above said. "Privatisation of one insurer is also under consideration. However, no formal policy decision has been taken yet," the person said, requesting anonymity....