Ultimate magazine theme for WordPress.

HDFC to buy Apollo Munich for Rs 1,347 crore

0 45

The merged entity will have a combined market share of 6.4 per cent in the non-life insurance industry, with 308 branches

Housing finance firm HDFC will acquire a majority (51.2 per cent) stake in Apollo Munich Health Insurance from the Apollo Hospitals Group for Rs 1,347 crore, and subsequently, merge the health insurer with its arm HDFC ERGO General Insurance. The merged entity will have a combined market share of 6.4 per cent in the non-life insurance industry, with 308 branches and a business of Rs 10,807 crore.

HDFC will acquire 50.8 per cent from the Apollo Hospitals group for Rs 1,336 crore and will buy out the 0.4 per cent stake being held by the employees for Rs 10.84 crore.

German insurer Munich Health will pay Rs 294 crore to Apollo Hospitals Enterprise and Apollo Energy for terminating their joint venture, HDFC Chairman Deepak Parekh said.

The transaction, he added, would strengthen HDFC’s commitment to the growing health insurance segment. “The combined expertise of HDFC ERGO and Apollo Munich will result in greater product innovation, wider distribution and enhanced servicing capabilities,” he said.
In the first stage, HDFC would acquire the entire equity stake of Apollo Hospitals Group and equity stake of some employees totalling to 51.2 per cent in Apollo Munich. Thus, Apollo Munich will be held a subsidiary of HDFC. In the second stage, there will be a merger of Apollo Munich with HDFC ERGO, subject to approval of the National Company Law Tribunal and final approval from Insurance Regulatory and Development Authority of India (Irdai). Post the scheme of amalgamation, HDFC ERGO and Apollo Munich will merge into one entity under the HDFC ERGO brand.

“We are sure that the new shareholder will continue to nurture and scale the business to greater heights and confident that all stakeholders will be positively impacted,” Shobana Kamineni, Chairperson, Apollo Munich Health Insurance and Vice-Chairperson, Apollo HospitalsEnterprises, was quoted as saying in the statement issued by HDFC.

HDFC Ergo General Insurance Company is a 51:49 joint venture between the HDFC and ERGO International, the primary insurance entity of the Munich Re Group of Germany. HDFC ERGO is the country’s third largest private general insurer with a 5.1 per cent market share.

 

 

- Advertisement -

Leave A Reply

Your email address will not be published.