UK-based life insurance company Standard Life will increase its stake in HDFC Standard Life Insurance Company to 26% from 14%.
The insurance company is a joint venture between the Housing Development Finance Corporation (HDFC) and a group company of Standard Life. HDFC holds 84.2% in the joint venture.
Deepak Parekh, chairman, HDFC, said,''Standard Life will increase its stake in the life venture to 26% in a months' time by the return on equity formula. For the general insurance business, we are in talks with four or five international players. The partner will be finalised in a month or so. The partner for the general insurance business will come in at a premium as HDFC is a established brand, and has a set business and distribution network in the country.''
HDFC recently bought out Chubb Corporation's 26% stake in HDFC Chubb General Insurance Company, following which it has been scouting for a joint venture partner for its general insurance business.
Read more in The Business Standard article.
Showing posts with label HDFC General Insurance. Show all posts
Showing posts with label HDFC General Insurance. Show all posts
Thursday, June 28, 2007
Wednesday, May 16, 2007
HDFC buys out Chubb in non-life JV
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.
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.
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