Mortgage lender HDFC Ltd said it has completed the acquisition of a majority stake in Chennai-based Apollo Munich Health Insurance Company Ltd for Rs 1,495.81 crore (about $210 million), more than previously announced.
HDFC purchased a 50.80% stake in the insurer from Apollo Hospitals Group for Rs 1,485.14 crore and a 0.36% stake from employees for Rs 10.67 crore, the lender said in a statement.
The mortgage lender had agreed to buy the stake in June last year. At the time, it had pegged the deal value at Rs 1,346.84 crore, subject to closing adjustments.
The completion of the deal comes after approvals from the Competition Commission of India, the Reserve Bank of India and the Insurance Regulatory and Development Authority of India (IRDAI), HDFC said.
Apollo Munich has now been renamed as HDFC ERGO Health Insurance Ltd and will operate as a subsidiary of HDFC.
Anuj Tyagi, executive director and chief business officer at HDFC ERGO General Insurance Company, has been appointed as the managing director and CEO of HDFC ERGO Health, subject to approval from IRDAI.
HDFC ERGO Health and HDFC ERGO General will shortly seek regulatory approval for a merger. After the merger, the resultant firm will be the second-largest private insurer in the accident and health segment in the country, the statement added. The combined gross direct premium will be over Rs 10,800 crore.
HDFC ERGO General had a 5.1% market share when the merger was announced last year. Apollo Munich is India’s second-largest health insurance provider.
HDFC holds a 50.49% stake in HDFC ERGO while Germany’s Munich Re owns the remaining through ERGO International AG, its main insurance entity. Munich Health Holding AG also held a stake in Apollo Munich.
In 2016, HDFC ERGO General Insurance had bought Larsen & Toubro Ltd's general and health insurance firm.