There is going to be a big deal in the insurance sector.Insurance giant HDFC Life Insurance has announced on Friday that it is going to buy 100 percent stake in Exide Life Insurance Company Limited.The deal is expected to be done for Rs 6687 crore.This news saw a jump in the shares of HDFC Life.While the shares of Exide Industries shone more.
Insurance consumers will also benefit from this acquisition.Let's know 5 big things related to this deal
Quarterly results of HDFC Life
HDFC Life's net profit for the first quarter of the current financial year declined by 33 percent to Rs 302 crore.Due to this, the company had earned a net profit of Rs 451 crore in the same quarter of the previous financial year.The insurance company had said in a communication to the stock exchanges that its total premium increased by 31 percent to Rs 7,656 crore in the first quarter of 2021-22.It stood at Rs 5,863 crore in the same quarter of the previous financial year.In the April-June quarter, the insurance company's renewal premium increased by 20 percent.
Huge increase in the insurance claim
HDFC Life on the impact of the pandemic in the first quarter said that the company's death claims during the second wave increased three-four times as compared to the first wave.The company settled 70,000 claims during this period.The company said it settled claims of Rs 1,598 crore and Rs 956 crore in gross and net worth, respectively, during the quarter.