Exide Life Insurance

Leading private sector life insurer HDFC Life expects its margins to improve further in the fourth quarter, having already neutralised the hit it had taken from the merger of Exide Life three quarters earlier than expected. The company closed the December quarter with a new business premium margin of 26.8 per cent. Its FY22 VNB (value of new business) margin stood at 27.4 per cent and the management is confident of reaching there or making a further improvement as it closes the current fiscal. Over the weekend, HDFC Life reported a 15.2 per cent growth in net income at Rs 315.22 crore on a net premium income of Rs 14,379.38 crore, which rose 18.6 per cent annualised from Rs 12,124.36 crore. Its first-year premium stood at Rs 2,724.87 crore, up from Rs 2,115.97 crore, and the renewal premium soared to Rs 7,187 crore from Rs 5,543.03 crore. At 26.8 per cent, the VNB margin is already at the pre-merger level, neutralising the impact of the merger of Exide Life (in Q2 FY23) almost thre

A day after insurance regulator Irdai's final approval, HDFC Life Insurance on Friday announced completion of Exide Life merger. This marks the completion of the first-ever merger and acquisition (M&A) transaction in the Indian life insurance sector, HDFC Life said in a statement. HDFC Life had completed the acquisition of Exide Life in January 2022. The entire transaction from announcement of the deal in September 2021 followed by the acquisition in January 2022 and the eventual merger was completed in less than 14 months, it said. "Pursuant to the merger, customers across both entities will have access to a wider bouquet of products and service touch points. Employees and distributors will benefit from a larger, stronger organisation that has complementary business models, wider geographical presence and strong ethos," it said. This merger will accelerate the scale-up of HDFC Life's agency channel and enhance its geographical presence in tier II and tier III markets, it ...

The National Company Law Tribunal (NCLT) on Friday approved the merger of Exide Life Insurance with HDFC Life Insurance. The Scheme of Amalgamation was approved by the Mumbai bench of NCLT, HDFC Life Insurance said in a regulatory filing. Earlier this year, HDFC Life had announced acquisition of 100 per cent stake in Exide Life from its parent Exide Industries after issuing over 8.7 crore shares at an issue price of Rs 685 and a cash payout of Rs 726 crore, aggregating to Rs 6,687 crore. Exide Industries now holds 4.1 per cent stake in HDFC Life. The Scheme of Amalgamation is subject to the final approval of the Insurance Regulatory and Development Authority of India (IRDAI), it added.

'The acquisition will accelerate the scale-up of the proprietary channels, strengthen presence in South India and across tier 2 and tier 3 locations,' HDFC Life said

Move will augment the embedded value of HDFC Life by 10%

In a Q&A, the MD & CEO of HDFC Life dwelt on the contours of her company's acquisition of Exide Life Insurance and how it will help HDFC Life consolidate its position in the industry

Former gets exit from a non-core capital-intensive business as well as liquidity; merger synergies for latter likely between 12-15 months

On the other hand, HDFC Life was down 4 per cent at Rs 728.55 on the BSE on profit booking

This is the eighth consecutive year in which the company has reported profit, Exide Life Insurance said in a statement

Use instalments to increase cover; benefit from quick approvals

Though the markets have gained from the recent low, boosted by a $2 trillion stimulus in the US, followed by the announcements from the Indian government and the RBI, we continue to remain cautious

The company is discontinuing its existing regular term plan and replacing it with the ROP as there is more demand for ROP plans

Dhoni will feature in the Exide Life Insurance marketing campaign starting June 22