 "Deepak Parekh")
The merger of HDFC with private lender HDFC Bank will provide greater business opportunities for HDFC Life in the form of cross selling of products and create long-term value for stakeholders, according to its chairman Deepak Parekh.
“With the recent amalgamation of HDFC with and into HDFC Bank, HDFC Bank has now become the promoter and holding company of HDFC Life. We should expect deeper engagement within the group entities,” Parekh said in his address to shareholders at the annual general meeting of life insurer.
Dwelling on business growth, he said the post-merger integration with Exide Life and synergy realization from the combined business is progressing well, resulting in achievement of margin neutrality, ahead of the planned timeline. Further, the newly added distribution partners now have access to HDFC Life’s products and digital capabilities, thus adding impetus to growth.
The acquisition of Exide Life Insurance Company Ltd, - the first M&A transaction in the life insurance industry was completed on October 14, 2022. This entire transaction – from announcement in September 2021, followed by the acquisition in January 2022 and the eventual merger – was completed in less than 14 months.
He also touched upon regulatory developments in the insurance sector. Insurance Regulatory Development Authority of India (IRDAI) is proposing several changes that would enhance insurance penetration, facilitate sustainable growth and ease the operating environment. There are several draft regulations under discussion like the conceptualization of online market place - Bima Sugam, launch of Bima Vistaar- an initiative aimed at increasing penetration in rural areas through Bima Vahaks, Parekh said.
Further, granting of composite licenses, enabling distribution of other financial products by insurers, allowing insurers to set up an Insurtech subsidiary, are also being deliberated by the Government of India to boost stakeholder confidence in the Indian insurance space, he added.
