HDFC Life to get Filesadmin.co opportunities from HDFC merger, says Deepak Parekh
HDFC’s merger with private lender HDFC Bank will provide greater business opportunities for HDFC Life in the form of product cross-selling and long-term value creation for stakeholders, according to its chairman, Deepak Parekh.
With HDFC’s recent merger with and within HDFC Bank, HDFC Bank is now the promoter and holding company of HDFC Life. “We should expect deeper involvement within the group entities,” Parekh said in his address to shareholders at the life insurance company’s annual general meeting.
In terms of business growth, he said the post-merger integration with Exide Life and the realization of synergies from the combined business are progressing well, leading to the achievement of margin neutrality, well ahead of the planned schedule. Furthermore, newly added distribution partners now have access to HDFC Life products and digital capabilities, adding momentum to growth.
Acquisition of Exide Life Insurance Company Ltd, – The life insurance industry’s first merger and acquisition deal was completed on October 14, 2022. This entire transaction – starting with the announcement in September 2021, followed by the acquisition in January 2022 and eventual merger – was completed in less than 14 months.
He also touched on regulatory developments in the insurance sector. The Insurance Regulatory Development Authority of India (IRDAI) is proposing several changes that will enhance insurance penetration, facilitate sustainable growth and smoothen the operating environment. Parekh said there are several draft regulations under discussion such as visualizing the online market – Bima Sugam, launching Bima Vistaar – an initiative aimed at increasing penetration in rural areas through Bima Vahaks.
Further, granting compound licensing, enabling distribution of other financial products by insurance companies, and allowing insurance companies to set up a subsidiary of Insurtech are also being discussed by the Government of India to boost stakeholder confidence in the Indian insurance business.
First published: July 21, 2023 | 10:29 p.m ist