The merged entity is claimed to be the second-largest private insurer in the accident and health insurance industry in India
India’s Housing Development Finance Corporation (HDFC) has announced the completion of the merger between HDFC ERGO General Insurance and HDFC ERGO Health Insurance (previously called Apollo Munich Health Insurance).
The merger was closed following approvals from India’s National Company Law Tribunal (NCLT) and the Insurance Regulatory and Development Authority (IRDAI).
The merged entity will operate as HDFC ERGO General Insurance.
It is expected to become the second-largest private insurer in the accident and health insurance sector in India, besides growing its product suite to more than 50 plus products in the segment.
HDFC ERGO General Insurance chairman Deepak Parekh said: “This marks the second successful merger in India’s general insurance sector, following the merger of L&T General Insurance and HDFC ERGO in 2017.
“It makes HDFC ERGO the one-stop-shop for all our general and health insurance offerings. Health insurance is expected to be one of the growth drivers for the general insurance industry, and with this merger, we are now a dominant player within the health insurance industry.”
In January 2020, HDFC acquired a stake of nearly 51% in Apollo Munich for INR14.95bn ($200m). The latter was renamed as HDFC ERGO Health Insurance and was set to be merged with HDFC ERGO General Insurance.
Apollo Munich was a joint venture created in 2007 between Apollo Hospitals and German reinsurer’s Munich Re’s unit Munich Health.
HDFC at the time of the acquisition said that Munich Health will pay INR2.94bn ($39m) to Apollo Hospitals’ subsidiaries to scrap the joint venture.
HDFC ERGO is a joint venture formed by HDFC (51%) and Munich Re-owned ERGO International (49%).
HDFC ERGO Health Insurance MD and CEO Anuj Tyagi said: “The merger of HDFC ERGO Health Insurance with HDFC ERGO culminates about 10 months of efforts to integrate both the entities. We would like to assure our policyholders of continuity of benefits, access to wider product suite and access to digital capabilities of HDFC ERGO.
“Our channel partners will now have access to the combined health insurance product suite of the merged entity.”