The non-life insurance space witnessed the first merger of two major non-life insurance companies - HDFC ERGO General Insurance, third-largest general insurance company and L&T General Insurance.
Media reports say that HDFC ERGO paid close to Rs.550 crore to acquire L&T General Insurance.
In a press release, Ritesh Kumar, MD & CEO, HDFC ERGO General Insurance said, “The merger marks the first amalgamation in the general insurance sector in India. The industry has seen an upward swing in the last financial year and we are sure that the individual strengths of the combined entity will lead to better efficiencies and enhanced service to our policyholders.”
In 2015-16, HDFC ERGO had registered a growth of 73% in premium collection. In addition, the insurer increased its market share from 3.5% to 4.6%. Currently, the market share of the newly merged company is 5.25%.
In the FY 2017-18, HDFC ERGO plans to further scale the business and expand its reach in tier II and III towns and cities by leveraging digital platform.