HDFC ERGO in Talks to Purchase Apollo Health Munich

HDFC ERGO, the general insurance subsidiary of Housing Development Finance Corp is planning to acquire Apollo Munich Health Insurance for an approximate valuation of Rs. 2,600 Crore.

Apollo Munich Health Insurance Company Ltd is a 51:49 joint venture between the popular Chennai-based Apollo Hospitals and Munich Re, German reinsurance company, which is also the second-largest health insurance provider in the country. Apollo will possess a marginal stake in the merged entity with HDFC ERGO. ERGO, the German insurer that possesses 49% stake in HDFC ERGO is owned by Munich Re. After the sale, Munich Re will exit the company.

HDFC, which raised Rs. 13,000 Crore by means of a qualified institutional placement (QIP) earlier in the year 2018, has been looking at opportunities to extend its businesses, including subsidiaries through acquisitions. Buying Apollo Munich is one of the multiple growth options that HDFC seems to be looking forward to investing in.