HDFC ERGO-Apollo Munich To Be Third Largest Non-Life Private Insurer
The combined entity will also be the seventh largest general insurer.
Apollo Munich Health Insurance Company Ltd.’s merger with HDFC ERGO General Insurance Company Ltd. will create India’s seventh-largest general insurer and third largest non-life private insurer.
The combined entity will have a market share of 6.4 percent, according to BloombergQuint’s calculations. HDFC ERGO General Insurance Company Ltd., prior to the deal, had a market share of 5.1 percent under gross written premium for financial year 2018-19 and Apollo Munich Health Insurance Company Ltd. accounted for 1.3 percent.
The deal will make HDFC ERGO the second largest private insurer in the accident and health segment with a market share of 8.2 percent, Housing Development Finance Corporation Ltd., HDFC ERGO’s parent, said in a press release. HDFC will buy a majority stake in Apollo Munich for Rs 1,347 crore.
New India Assurance Company Ltd. has the highest share in the gross written premium at 14.06 percent followed by United India Insurance Company Ltd. at 9.63 percent.
The gross direct premium income was the highest for Star Health and Allied Insurance Co. Ltd. at Rs 5,413 crore followed by ICICI Lombard General Insurance Company Ltd. currently. The combined entity’s gross direct premium income will be the second highest after the deal.