Setting aside LIC of India the Govt insurance company, Which is India's Largest Life Insurance Company ?
The HDFC Life Insurance and Max Life (MLIC) merger is set to create the largest private life insurance company (by FY16 individual premium market share) with a balanced product mix and strong bancassurance partners like HDFC Bank and Axis Bank. As per the agreed valuation and exchange ratio, the relative valuation of HDFC Life and MLIC should be 69% and 31%, respectively.
The merged entity will have largest market share (>24% private share on individual APE basis) and enjoy strong complementary benefits in product mix - while HDFC Life has robust ULIP (55%), Max Life is strong in traditional (72%) products. Thus, the merged entity will have a balanced mix of ULIP (45%) and traditional (55%, non-par 15%) products. It will also have unparalleled distribution – both entities have strong bancassurance partners (HDFC Bank >4,500 and Axis Bank >2,900 branches, MFS’ current agreement (valid till September 2021) with Axis Bank will hold good for the merged entity), plus Max Life has best-in-class agency productivity.
