Promoters of L&T General Insurance and are discussing the possibility of a merger of the two general insurers, The Economic Times reported May 6,citing sources.

L&T General is also considering bringing on a foreignpartner.

HDFC ERGO is a joint venture between and ERGO InternationalAG, the primary insurance entity of . HDFC may end up as thedominant shareholder in the new entity if a merger does go through. ERGO maybuy up some of the fresh equity to maintain its at 49%.