HDFC Shortlists Three Players For Insurance Venture

Mumbai: Housing Development Finance Corporation (HDFC) has shortlisted three foreign insurers for inducting one of them as a partner in its wholly-owned subsidiary, HDFC Chubb General Insurance Company. Of the three insurers, two are from the US and one from Australia. The shortlisted companies comprise US-based Travelers and Australia''s IAG Group. HDFC has shortlisted two to three players with whom talks are on for a possible tie-up. They have a readymade company, products, personal and commercial lines of businesses and HDFC''s brand and distribution network are available.

HDFC can also command a premium of another Rs 150 crore in lieu of a call option where the foreign partner would be allowed to increase its equity stake to 49 per cent from the present 26 per cent when the foreign direct investment (FDI) limit in the country is increased. In the month of May, HDFC forayed into an agreement with Chubb Global Financial Services Corporation, USA (Chubb Global) to purchase its 26 per cent stake in HDFC Chubb General Insurance Company (HCGICL) for Rs 32.5 crore, following which HCGICL became a 100 per cent subsidiary of HDFC.