For the first time in history merger successfully completed in non-life insurance sector of HDFC Ergo General Insurance and LT General Insurance. HDFC aims to raise around 20% growth which is Rs 7500 crore premium by the end of this financial year.
Estimated market share of the merged entity quotes to 4.9%.
In terms of market share, HDFC Ergo was at the fourth number before this deal take place.
The takeover opportunity of the LT arm for Rs. 551 crore was declared by the company in 2016. The amount of this buyout was around 1.1 times the gross premium of LT General Insurance.
National Company Law Tribunal (NCLT) and sectoral regulator IRDAI gave their consent then only the deal was able to reach its final stages.
Mukesh Kumar, executive director of HDFC Ergo General Insurance told, "The industry is likely to grow by 18%, whereas we are expecting a growth of 20% in the current fiscal.
HDFC Ergo aims to expand its reach in small towns as well by the end of this fiscal year.