 "Amitabh Chaudhry")
Private life insurer HDFC Life will become the largest private life insurer post merger with Max Life Insurance. Amitabh Chaudhry, managing director and chief executive officer, HDFC Life talks about the deal and the subsequent listing in the stock exchange. Excerpts:
Your proposed initial public offer (IPO) was one of the most talked about in the insurance industry. Was this deal an easier route for HDFC Life?
When this opportunity came along, we felt it was the best fit. Everyone from both sides agreed that this was a great, strategic merger. An IPO would have anyway taken time till November/December. We thought we could wait for another six months, since it was worth going through. Hence, we attempted it.
What is in it for policyholders?
There is nothing to worry for policyholders. In the merged entity, they will get an access to an array of products ranging from par, non-par, unit-linked insurance among others. Also, we will have one of the best distribution networks with HDFC Bank, Axis Bank, YES Bank, IDFC Bank, RBL Bank, IDFC Bank, Lakshmi Vilas Bank and Saraswat Bank as our partners.
Should we expect more deals as this triggers the beginning of consolidation in the insurance industry?
If right deals come along, we will continue to look at acquisitions. We have to see what value will be brought to the table by the potential partners and what they are willing to sign up for. Having said that, this is a large merger and it will take some time. So, we have to be careful about getting into another merger immediately. We are open to deals and have ability to do them. After our listing, we will have the currency to do all kinds of deals.
