HDFC ERGO: HEALTH

SERVICE 360-DEGREE
ANALYSIS
PROJECT SUBMITTED TO PROFESSOR RAJESH BABU, PUBLIC POLICY AND
MANAGEMENT, IIM CALCUTTA

OCTOBER 31, 2021

EXECUTIVE PROGRAM IN HEALTHCARE MANAGEMENT
IIM CALCUTTA, DIAMOND HARBOUR RD, JOKA, KOLKATA, WEST BENGAL 700104
By
DR. DEBJYOTI PAUL, ROLL No.
1. Product/Service and description:

There was a 2-stage transaction TOWARDS the formation of HDFC ERGO GENERAL
INSURANCE Company:

Stage 1: Acquisition of ~51% stake in Apollo Munich Health Insurance Company Ltd (Apollo
Munich) by HDFC Limited – the acquisition was completed in January 2020 and the name of
the company was changed to HDFC ERGO Health Insurance Limited. In the post-acquisition
and pre-merger phase, both entities (HDFC ERGO Health and HDFC ERGO) were operating as
independent legal entities.

Stage 2: Merger of HDFC ERGO Health with HDFC ERGO – the merger was concluded on
November 13th, 2020 after receipt of necessary approvals from The National Company Law
Tribunal (NCLT) and the Insurance Regulatory and Development Authority of India (IRDAI).
The merged entity is HDFC ERGO General Insurance Company Limited (HDFC ERGO).

Impact of the merger: The Company became the second largest retail health insurer in the
country with ~10% market share as has been asserted by Mr. Deepak S. Parekh, Chairman,
HDFC Ltd. This merger also became the second successful merger in India’s general
insurance sector, following the merger of L&T General Insurance and HDFC ERGO in 2017.

General Highlights of the HDFC Ergo Company (source: Company Annual Report, 2020-21):

· 3rd largest General Insurance Company in private sector.

· Overall market share of 6.2% for Fiscal Year 2020-21.

· Comprehensive product portfolio along with a balanced channel mix.

· Credit rating of ICRA/AAA, CRISIL/AAA, CARE/AAA and Acuité/AAA with a stable

outlook for the Non-Convertible Debentures (Subordinated Debt) programme.

· Solvency ratio of 190% vis-a-vis IRDAI required solvency ratio of 150%.

· PAN-India presence across 203 branches and a close-knit family of 6,400
professionals.

· ISO certified processes for Claims Services, Operations, Customer Services, ISO
certified Business Continuity Management System,

· ISO certified Information Security Management System.

· Issued more than 10 million policies and serviced more than 2 million claims in FY21.

Indemnity
Health
Insurance
Plan

HDFC
ERGO
SCHEME
S
Fixed benefit Top-up
Health Health
Insurance Insurance
Plan Plan

FIGURE1: HDFC ERGO - 3 DIFFERENT TYPES OF HEALTH INSURANCE PLANS