HDFC Life ‘Focused on Merger’, Weighing Options
Express news Global
updated: 08,2017 17:00 IST
New Delhi: Max India today said Max Life and HDFC Life stay focused on merger and are assessing different choices after the protection controller Irdai again communicated reservations on the arrangement.
Segment 35 of the Insurance Act, 1938 does not permit merger of a protection firm with a non-protection firm.
It stated: “HDFC Life and Max India stay focused on merger and assessing different alternatives.”
The plan of amalgamation proposes converging of protection business in an assention between Max Financial Services Ltd (MFSL), its auxiliary Max Life Insurance Company Ltd (MLIC), HDFC Standard Life Insurance Company Ltd (HDFC Life) and Max India.
HDFC Life and MLIC had recorded an application looking for on a basic level endorsement of Irdai for the proposed amalgamation plot on September 21, 2016.
In a complex and level organized demerger and merger arrange, Max India will amalgamate Max Life Insurance with Max Financial Services.
Along these lines, the protection business of the consolidated element is to be demerged with the goal that it can be exchanged to HDFC Standard Life Insurance Company.
According to the proposed conspire, the staying of the consolidated element i.e., less the protection business, will be amalgamated with Max India.
Max Financial Services, advanced by USD 2 billion Max Group, is the holding organization for Max Life.