On November 11, 2020 Insurance Regulatory and Development Authority of India(IRDAI) gave its final approval for the merger of HDFC ERGO Health Insurance (formerly Apollo Munich Health Insurance Co Ltd) with HDFC ERGO General Insurance Co Ltd (HDFC ERGO). The National Company Law Tribunal(NCLT) has sanctioned the scheme of amalgamation between HDFC ERGO Health and HDFC ERGO General on september 30, 2020.
- After the merger, the new entity will be the second-largest private insurer in the health and accident segment in India.
Note– HDFC ERGO general and HDFC ERGO health are the subsidiary of HDFC Ltd.
Key Info about the Amalgamation
i.As per the scheme of amalgamation through a share swap deal, HDFC ERGO Health will be dissolved without winding up.
ii.HDFC ERGO and HDFC ERGO Health…approved the share exchange ratio of 100:385 that is for every 385 shares of Rs 10 each held in HDFC ERGO Health as on the record date, 100 shares of Rs 10 each of HDFC ERGO would be allocated.
iii.HDFC will hold 50.58% stake in HDFC ERGO, after the completion of the merger.
- Before this, HDFC ERGO acquired a majority shareholding(51.2%) in Apollo Munich Health Insurance Co Ltd.
- After this, Apollo Munich Health Insurance Co has been renamed as HDFC ERGO Health Insurance (HDFC ERGO Health) and will operate as a subsidiary of HDFC.
Recent Related News:
On May 22, 2020 Insurance Regulatory and Development Authority of India(IRDAI) has approved the proposal of the state owned lender Union Bank of India-UBI(which holds 25.1% stake in Star Union Dai-Chi Life) to continue with its 30% holding in IndiaFirst Life Insurance.
About Insurance Regulatory and Development Authority of India (IRDAI):
Chairman – Subhash Chandra(C) Khuntia
Headquarters – Hyderabad, Telangana