Management of the HDFC Standard Life and Max Financial Services will be submitting their first set of arguments this week with respect to concerns raised by IRDA with regards to the merger this week.
Their collective first year (or new business) premium during September 2015 stood at Rs 10,415.35 crore, data collected by the Insurance Regulatory and Development Authority showed.
According to News Corp VCCEdge, the September quarter witnessed 232 M&A deals worth USD 24,673 million, an increase of 242 percent as compared to USD 7,206 million in the year ago period.
Max Financial Services shares declined over 3 percent intraday Monday after a media report indicated that Goldman Sachs is looking to sell its stake in the company.
Private equity currently seems to be concentrated on the start-up sector, says Prashant Mehra, Partner, Grant Thornton, adding, even in this particular month 55 percent of USD 1.1 billion invested was in the start-up sector.
As per the deal, there would be two schemes of amalgamation. First, Max Life will merge into Max Financial and then the merged entity would amalgamate into HDFC Life.
Distributors of insurance products -- HDFC Bank, Axis Bank and Yes Bank - will contribute more to the combined entity's growth, said HDFC Chairman Deepak Parekh. The merger will bring together two companies with varied strengths, said Max Life‘s Executive Chairman Analjit Singh.
In a press conference today, management of Max Life and HDFC Standard said that shareholding will be decided by swap ratio and entire process is likely to take 10 months.
Mistry is very keen on the IPO of HDFC Standard Life. But he did not disclose any information on valuations.
Keki Mistry, the mortgage lender's VC and CEO, says the valuation of HDFC Standard Life will be high. Also, expect lending rates to go down by a few basis points.
India has immense potential as an insurance market. But it needs some serious support from the government if that potential is to be achieved, starting with more tax incentives for buying personal insurance policies. That's the crux of the insurance sector's wish list for Budget 2016.
Life Insurance Corporation posted claim settlement ratio of 97.73 per cent last fiscal, as compared to 97.42 per cent in 2011-12. For private insurers, the settlement ratio had gone down to 88.65 per cent in 2012-13, as compared to 89.34 per cent during the previous year, Irda said.
State-owned Life Insurance Corporation has outperformed its peers in the private sector by recording a 7.26 percent growth in premium collection during the first half of the current fiscal.
Premium collected by life insurance companies dropped 3.45 per cent in the April-October period due to various factors that are influencing the financial sector as a whole.
Keki Mistry, vice chairman and chief executive officer, HDFC told CNBC-TV18 that the slew of reforms announced the government are very positive and have helped India avoid the possibility of a downgrade.
After a long wait, the IRDA today came out with guidelines that would allow private sector life insurers, like HDFC Standard Life, ICICI Prudential and SBI Life, to tap the capital market for funds.
HDFC Standard Life is all set to break even its business in FY12. The company has trimmed losses to Rs 77 crores in FY11 versus a Rs 275 crore loss in the previous year.
Insurance sector regulator IRDA today said guidelines to allow life insurance companies to raise funds from the capital market will be out by the end of this month.
The USD 53 bn insurance industry had a dream run between 2005 and 2010 of registering CAGR of 33%. The scene suddenly chanced in the last few months with the insurance regulator (IRDA) ushering new guidelines for the popular ULIP schemes. Given the situation, what does the future look like? That is our talking point today.