The Insurance Regulatory and Development Authority of India, or IRDAI, approved the majority stake acquisition and merger deal between Mumbai-based Housing Development Finance Corp. Ltd. and Apollo Munich Health Insurance Co. Ltd., Livemint reported.
HDFC will acquire a 51.2% stake in Apollo Munich Health Insurance for a total of 13.47 billion rupees. Apollo Munich Health Insurance is a joint venture between Apollo Hospitals Enterprise Ltd. and Munich Re's health and reinsurance business, Munich Health Holding AG.
The company announced in June 2019 that it would acquire Apollo Hospitals' entire 50.8% stake in the joint venture for 13.36 billion rupees and an additional 0.4% stake from Apollo Munich Health Insurance's employees for 108.4 million rupees. Following the completion of the acquisition, Apollo Munich Health Insurance will be merged into HDFC ERGO General Insurance Co. Ltd., a joint venture between HDFC and Munich Re's ERGO International AG.
HDFC ERGO is expected to have a combined gross direct premium of 108.07 billion rupees and a 6.4% nonlife insurance market share after the merger, according to a company filing in June 2019.
As of Jan. 2, US$1 was equivalent to 71.33 Indian rupees.