HDFC Life Insurance has acquired Exide Life Insurance for Rs.6,687 crore. The transaction is subject to regulatory approval.
The life insurer believes that the acquisition will help them grow their footprint in south India, increase their distribution reach and create more service touch points for policyholders.
In a press release, the company said, “Exide Life complements HDFC Life’s geographical presence and has a strong foothold in South India, especially in Tier 2 and 3 towns, thus providing access to a wider market.”
Deepak S. Parekh, Chairman, HDFC Life said, “It would enhance insurance penetration and further our purpose of providing financial protection to a wider customer base.”
Vibha Padalkar, MD & CEO, HDFC Life said, “We believe that this amalgamation can result in value creation for customers, employees, shareholders and distribution partners. It gives us an opportunity to realise synergies arising out of complementary business models and further bolster our proprietary distribution network.”
The acquisition is expected to be completed by the end of 2022, said the company.