Millennium Post

Max Life, HDFC Life in merger talks; joint AUMs to be Rs 1 trn

 Boards of HDFC Standard Life Insurance Co, Max Life Insurance Company Ltd and Max Financial Services Ltd at their respective meetings held today, approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential merger.

They will explore "a merger of Max Life and Max Financial Services into HDFC Life by way of a scheme of arrangement", HDFC Ltd said in a statement. The total premium of the merged entity would be nearly Rs 26,000 crore and assets under management will top Rs 1 lakh crore. In the private life insurance space, only ICICI Prudential Life Insurance had reported AUM of Rs 1 lakh crore. 

Edinburgh-based Standard Life Plc holds 35 per cent stake in HDFC Life, in which HDFC owns 61.63 per cent. Total premium of HDFC Life for the financial year ending March 31, 2016, was Rs 16,313 crore and AUM was Rs 74,247 crore. 
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