HDFC on 2nd January 2020 has announced that it has got approvals for acquiring a majority of shares in Apollo Munich with approvals coming from the Competition Commission of India, RBI and Insurance Regulatory and Development Authority of India. On 9th January 2020, they finally declared that the acquisition is completed for INR. 1495.81 crore.
HDFC ERGO withholds 50.80 percent of shares in Apollo Hospitals Group in Apollo Munich for INR. 1485.14 crore and 0.36 percent shares of employees for INR. 10.67 crore and is one of the major acquisitions for HDFC.
Following this acquisition, Apollo Munich Health Insurance is now renamed as HDFC ERGO health insurance. It will now operate as a subsidiary of HDFC limited.
Apollo Munich health insurance is a joint venture between Apollo Hospital Groups and Munich Health, which is one of the three business segments of Munich Re, a German-based insurance company. It has a cashless network over 10000+ hospitals. The rules for HDFC will remain the same. Anuj Tyagi is appointed as Managing Director and CEO of HDFC ERGO Health. Antony Jacob, managing director of Apollo Munich HDFC ERGO Health and HDFC ERGO General will soon apply for National Company Law Tribunal (NCLT). This merging will be considered as the second-largest private insurer in the field of accident and health segment in India.
Apollo Munich to its existing customers has announced that there will be no changes in policy terms and conditions, which includes renewal benefits and claim process. There will be changes in the company’s name for the existing policyholder. Additionally, the policyholder will get innovative and simplified benefits as well as services from ERGO.
HDFC stock is now INR. 1270.80 on BSE, which is up to 1.09 from the previous close. The actual customer experience would be seen after 6 months of operation of new management.