ERGO is HDFC's new general insurance partner
Leading housing finance company HDFC Ltd today announced Ergo International AG as the new joint venture partner for its general insurance business.
By PTI |
NEW DELHI: Leading housing finance company HDFC Ltd today announced Ergo International AG as the new joint venture partner for its general insurance business.
Ergo, a group company of Munich Re, the world's second biggest re-insurance company, under the agreement reached would pick up 26 per cent stake in HDFC General insurance Ltd, a company statement said. This is the maximum permissible limit under the existing insurance regulation.
The new company will be named as HDFC Ergo General Insurance Ltd.
HDFC had earlier shortlisted three foreign companies in its partner selection process for its general insurance business.
Munich Reinsurance Chairman Nikolaus von Bomhard had in the past said that the joint venture for general insurance could happen earlier than life insurance venture and the likelihood of partnering with the private sector is higher for the non-life venture.
Before this, the US-based Chubb Corporation had 26 per cent stake in HDFC General insurance Ltd.
Chubb, after five years of partnership, walked out of the venture in May by surrendering 26 per cent stake to HDFC for an undisclosed amount. Following this, the venture became 100 per cent subsidiary of HDFC.
HDFC also runs a life insurance firm in joint venture with UK's Standard Life.
Ergo, a group company of Munich Re, the world's second biggest re-insurance company, under the agreement reached would pick up 26 per cent stake in HDFC General insurance Ltd, a company statement said. This is the maximum permissible limit under the existing insurance regulation.
The new company will be named as HDFC Ergo General Insurance Ltd.
HDFC had earlier shortlisted three foreign companies in its partner selection process for its general insurance business.
Munich Reinsurance Chairman Nikolaus von Bomhard had in the past said that the joint venture for general insurance could happen earlier than life insurance venture and the likelihood of partnering with the private sector is higher for the non-life venture.
Before this, the US-based Chubb Corporation had 26 per cent stake in HDFC General insurance Ltd.
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Chubb, after five years of partnership, walked out of the venture in May by surrendering 26 per cent stake to HDFC for an undisclosed amount. Following this, the venture became 100 per cent subsidiary of HDFC.
HDFC also runs a life insurance firm in joint venture with UK's Standard Life.
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