"life insurance"

Incredibly High Claim Ratio of 170% for Government Backed Insurance Policies

Posted on 16 Aug 2017 by Easypolicy

The 2015 Budget Speech by Finance Minister Arun Jaitley mentioned about a couple of government backed life insurance schemes. Currently, about 20% of the entire population of the country has any life insurance and the intent of these was to increase that number.

Two years down the line, both the schemes Pradhan Mantri Jeevan Jyoti Bima Yojna (PMJJBY) and Pradhan Mantri Suraksha Bima Yojya (PMSBY) are knocking the doors of almost unsustainable claims to premium ratio. The PMJJBY has hit about 121% claims is to premium ratio only in its second year, while the PMSBY has even higher rates of 170% for the year 2016-2017.

The annual premium amount for both the schemes stands at Rs. 330 and Rs. 12 for PMJJBY and PMSBY respectively. The first year of operations saw the same ratio at 88% for PMJJBY and 121% for PMSBY. For reference, regular term and accidental insurances have a ratio at 40-45%.
 
This has sent the insurers into a frenzy and they are having talks with the government to increase the premium for PMSBY to about Rs. 75-100 for an increased coverage of Rs. 4 lacs as against the current 2 Lacs for PMSBY. But the government wants to keep an eye for a couple of years before making any changes to the premium prices.

HDFC, Max Group Merge Life Insurance Businesses to Create Company Worth Rs 67,000 Crore

Posted on 10 Aug 2016 by Easypolicy



HDFC Chairman Deepak Parekh and Max Group Chairman Analjit Singh announced a deal merging their life insurance businesses to create what will eventually be India's largest listed life insurance company with an estimated market value of Rs 67,000 crore once the all-share transaction is completed in about 12-15 months.

The Max promoter group will be paid a non-compete fee of Rs 850 crore over four years. The boards of HDFC Life, Max Life and Max Financial Services approved the scheme of arrangement for merging the insurance businesses on Monday.

Arpwood Capital was the lead financial adviser to the deal. "As per the agreed valuation and exchange ratio, the relative valuation of HDFC Life and Max Life would be 69 per cent and 31 per cent, respectively," HDFC Life said in a release on Monday.
The merged entity will retain the HDFC Life name. Once regulatory and other approvals come through, the companies will engage in a series of transactions before the deal is completed: Max Life will be absorbed by listed parent Max Financial Services.
Source: Economic Times
Dated: 9th August

ICICI Prudential Life Insurance files DRHP for Rs 5,000-crore IPO

Posted on 28 Jul 2016 by Easypolicy

ICICI Bank BSE 0.63 % has filed draft red herring prospectus (DRHP) with SEBI for an initial public offer (IPO), worth up to Rs 5,000 crore. 

Country's largest private sector lender said it will sell 12.65 per cent stake in its subsidiary ICICI Prudential Life Insurance Company, offloading more than 18 crore shares through a public offer. 

The share selling by the bank in the subsidiary firm is estimated to fetch around Rs 5,000 crore.
 

In a regulatory filing today, ICICI Bank said ICICI Prudential Life Insurance Company has filed a draft red herring prospectus (DRHP) with the market regulator SEBI.
The public offer is for up to 18,13,41,058 equity shares of ICICI Prudential Life Insurance Company, representing approximately 12.65 per cent of its equity share capital for cash, through an offer for sale by ICICI Bank, it said.
 
In a regulatory filing today, ICICI Bank said ICICI Prudential Life Insurance Company has filed a draft red herring prospectus (DRHP) with the market regulator SEBI.
 

The public offer is for up to 18,13,41,058 equity shares of ICICI Prudential Life Insurance Company, representing approximately 12.65 per cent of its equity share capital for cash, through an offer for sale by ICICI Bank, it said.
 

Source: Economic Times

Dated: July,18

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