HDFC said it has agreed to buy a 51% of Apollo Munich Health Insurance Company Ltd for around Rs 1,347 cr.\n\n\n\nApollo Munich will be merged with HDFC's general insurance subsidiary, HDFC ERGO General Insurance Company Limited, even as Munich Re continues to remain invested in the new, merged entity.\n\n\n\nHDFC already has a joint venture with Munich Re via ERGO, the insurance subsidiary of Munich Re.\n\n\n\nAs part of the transaction, Munich -- which is the minority shareholder in Apollo Munich -- will pay Rs 294 crore to Apollo Hospitals Enterprise Ltd and Apollo Energy Ltd in connection with the termination of the joint venture.\n\n\n\nHDFC, on its part, will pay Rs 1,336 cr to Apollo Hospitals Group and Rs 10.84 cr to some of the insurer's employees, as part of the deal.\n\n\n\n"The proposed transaction brings together two large insurance players with complementary capabilities," the non-banking finance company said.\n\n\n\nThe merged insurance entity has a combined market share of 6.4% of non-life insurance industry, with 308 branches across the country. \n\n\n\n"This also makes the combined entity the second largest private insurer in the accident & health segment with a market share of 8.2%. \n\n\n\n"The proposed merger is expected to result in significant benefits to policy holders and other stake holders with an enhanced product suite, touch points, technology innovation, as also via scale based synergies," HDFC added.\n\n\n\n Deepak Parekh, Chairman of HDFC Ltd and HDFC ERGO General Insurance said the transaction will give his company a strong presence in the health insurance segment, which he expects to drive growth in the general insurance segment in India.\n\n\n\n\u201cHealth insurance penetration in India is still at a very nascent stage compared to the global average...This transaction will strengthen the HDFC group\u2019s commitment to the growing health insurance segment. \n\n\n\n"The combined expertise of HDFC ERGO and Apollo Munich will result in greater product innovation, wider distribution and enhanced servicing capabilities, benefiting their 1.2 crore policy holders.\u201d \n\n\n\n Ms. Shobana Kamineni, Chairperson Apollo Munich Health Insurance and Vice Chairperson Apollo Hospitals Enterprise Limited said her company is "passing on the baton of Apollo Munich" to HDFC.\n\n\n\n"Apollo Munich established its leadership in the industry by winning several awards with its market leading innovations and customer centric approach. We are sure that the new shareholder will continue to nurture and scale the business to greater heights and confident that all stakeholders will be positively impacted," she said.\n\n\n\nShe added that the funds from the divestment will enable Apollo Hospital group to focus on its core healthcare business.\n\n\n\nThe proposed share acquisition will be subject to regulatory approvals by National Housing Bank (NHB), Insurance Regulatory and Development Authority of India (IRDAI) and Competition Commission of India (CCI). \n\n\n\nHDFC Ltd. is India\u2019s leading mortgage lender and a well - established financial conglomerate. It has given home loans to over 70 lakh customers . \n\n\n\nIt has 546 offices in India.\n\n\n\nApollo Hospitals has over 10,000 beds across 71 Hospitals, 3500 Pharmacies, over 90 Primary Care and Diagnostic Clinics, 110 plus telemedicine centres and 186 plus Apollo Munich Insurance branches.