HDFC ERGO Common Insurance coverage (HDFC ERGO), India’s third largest common insurance coverage firm within the personal sector, has introduced the completion of its merger with HDFC ERGO Well being Insurance coverage (previously generally known as Apollo Munich Well being Insurance coverage).
Following approval of the merger by the Nationwide Firm Regulation Tribunal and the closing approval from IRDAI, the merger took impact on 13 November 2020.
Mr Deepak Parekh, Chairman, HDFC ERGO Common Insurance coverage Firm, stated that the merger makes HDFC ERGO the one-stop-shop for common and medical insurance choices.
The merger makes HDFC ERGO the second largest personal insurer within the Accident & Well being Insurance coverage enterprise, increasing its product suite to 50+ merchandise on this phase. Within the monetary yr ended 31 March 2020 (FY2020), the merged entity had an total market share of 6.2% and about 8% market share within the Accident & Well being Insurance coverage phase.
Mr Parekh stated, “This marks the second profitable merger in India’s common insurance coverage sector, following the merger of L&T Common Insurance coverage and HDFC ERGO in 2017.”
Mr Oliver Willmes, COO of ERGO Worldwide and director of HDFC ERGO Common Insurance coverage, stated, “The merger supplies us with the chance to develop by rising our footprint and distribution community, in keeping with our strategic goal to be amongst the highest personal insurers in our core markets.”
He added, “We anticipate vital synergy potential based mostly on our mature enterprise practices resembling excessive diploma of automation and scale, resulting in price efficiencies and higher working ratios.”
HDFC ERGO Common Insurance coverage is a 51-49 three way partnership between the Housing Growth Finance Company (HDFC), India’s premier housing finance establishment and ERGO Group, the first insurance coverage entity of the Munich Re Group of Germany.