HDFC Life Insurance Merges Exide Life Insurance After Approval
HDFC Life Insurance merged Exide Life Insurance after getting the final approval from IRDAI. HDFC Life had acquired Exide 100% stake from Exide Industries in January.
The conclusion of the Exide Life merger was announced by HDFC Life Insurance on Friday, one day after receiving final permission from the insurance regulator IRDAI.
The first merger and acquisition (M&A) transaction in the Indian life insurance industry has now been completed, according to a statement from HDFC Life. Exide Life had been fully acquired by HDFC Life as of January 2022.
It claimed that less than 14 months passed between the announcement of the deal in September 2021, the acquisition in January 2022, and the actual merger.
“Customers from both companies will be able to access a larger variety of products and service touch points as a result of the combination.
A larger, more powerful organization with complementary business models, a broader geographic footprint, and a strong corporate culture will be advantageous to its employees and distributors ” it read.
According to the company, the combination will hasten the expansion of HDFC Life’s agency channel and strengthen its geographic footprint in tier II and tier III markets.
In order to strengthen its position in the south Indian market, HDFC Life purchased a 100% share in Exide Life Insurance Company from its parent company Exide Industries in January for Rs 6,687 crore.
Exide Industries purchased a 4.12% share in HDFC Life by selling its life insurance business to HDFC Life. The National Company Law Tribunal (NCLT), Mumbai bench, gave the insurer permission to incorporate Exide Life into itself last month.