HDFC has bought out its US partner Chubb from its non-life insurance joint venture. The shareholders have approached IRDA with their decision to part ways.
After the buyout, HDFC Chubb General Insurance will be a wholly-owned subsidiary of HDFC. The corporation is likely to bring in another foreign partner in the future. HDFC has already been approached by insurance groups from the US, Europe and Japan for its proposed non-life venture.
The HDFC Chubb separation is the first instance of a failed marriage in the insurance industry. Both partners are keen on the non-life business in India, but irreconcilable differences had arisen over the way the business is run.
Although HDFC has refused to confirm it, sources said that HDFC has paid a nominal amount close to the par value of shares. HDFC Chubb has a paid-up capital of Rs 125 crore to which HDFC has contributed Rs 92.5 crore and Chubb Rs 32.5 crore.
Read more in The Economic Times article.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment