HDFC Standard Life Insurance Company Ltd, a joint venture of mortgage lender Housing Development Finance Corporation (HDFC) and UK-based Standard Life Plc, has set up a wholly owned arm in Dubai to offer reinsurance services.
HDFC International Life and Re Company Ltd, floated in the Dubai International Financial Centre, will have an initial capital outlay of $12.33 million, as per a stock market disclosure by HDFC.
HDFC International is likely to start its business operations shortly, subject to completion of regulatory formalities for obtaining the final licence from the Dubai Financial Services Authority.
The new company will offer reinsurance services and may also start directly underwriting insurance contracts, subject to receipt of necessary approvals. It would initially offer reinsurance services in the UAE and subsequently expand to other jurisdictions.
In August last year, HDFC had announced that Standard Life would acquire 9 per cent more of HDFC Life from the Indian lender at Rs 95 a share, subject to receiving regulatory approvals. With this, Standard Life agreed to raise its holding in HDFC Life to 35 per cent from 26 per cent. Accordingly, HDFC’s shareholding in HDFC Life would stand at 61.65 per cent.
Standard Life is listed on the London Stock Exchange and has businesses in the UK, Europe, North America, Asia and Australia.
HDFC and Standard Life launched the joint venture in 2000. HDFC Standard Life was the first private life insurance company to be granted a licence to operate in India. The insurer is likely to be among the first ones from the sector to bring out an initial public offering, which could happen later this year or next year, as per some media reports.