Standard Life seeks to increase stake in HDFC Life

RNS Number : 1462W

Standard Life plc

14 August 2015

 



Standard Life plc

14 August 2015

Standard Life seeks regulatory approval to increase stake in HDFC Life

Standard Life plc announces that, following the passing of the Insurance Laws (Amendment) Act 2015 by the Indian Parliament, terms have been agreed with HDFC to seek regulatory approval to take an increased stake in HDFC Standard Life Insurance Company Limited ("HDFC Life") for a consideration of approximately £169m^#. This would take the total stake from 26% to 35%.

The conclusion of the transaction is subject to regulatory approvals, including:

·     The Competition Commission of India

·     The Foreign Investment Promotion Board

·     Insurance Regulatory and Development Authority of India

Keith Skeoch, CEO of Standard Life plc, said: "Today's announcement marks a strengthening of our well-established relationship with HDFC. The proposed investment demonstrates our long-term commitment to India and the future success of HDFC Life."

^# Conversion based on INR|GBP exchange rate of 101.1899 on 13 August 2015.

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About Standard Life

·      Standard Life is a leading long term investment savings business, established in Edinburgh in 1825.

·      Standard Life is a global business, employing around 6,500 people internationally, through businesses in the UK, Europe, North America, Asia and Australia.

·      Around 4.5 million customers worldwide trust Standard Life with their financial futures and the business is responsible for administration of £302 billion of their assets (as at the end of June 2015). Standard Life supports a further 20 million customers through its Chinese and Indian joint venture businesses.

·      The Standard Life Investments brand offers truly global asset management expertise with strong investment capabilities.

·      Wherever Standard Life operates in the world, it is motivated by a sense of responsibility. That is what has helped it be a sustainable business over the long term. Standard Life is proud to be listed as a leader for corporate sustainability in its industry in the Dow Jones Sustainability Indices (DJSI World and DJSI Europe).

·      In the UK, Standard Life offers a range of individual and group pensions, SIPPs, ISAs, annuities, life assurance, offshore bonds, investment management, wealth management, tax and estate planning services. By understanding and offering innovative products and the right support, Standard Life makes it easier for its customers and clients to plan ahead and feel more confident about the future.

·      Standard Life plc is listed on the London Stock Exchange and has around 1.2 million individual shareholders in over 50 countries around the world. It is one of the top 500 companies worldwide, by revenue, as listed in the 2015 Fortune Global 500.

·      You can follow Standard Life Group on www.twitter.com/StandardLifeplc

About HDFC Limited

·      HDFC was listed in October 1977 as a public limited company specialising in providing housing finance primarily to individual households and corporates for the purchase and construction of residential housing.

·      HDFC is India's first retail housing finance company and is currently one of the largest originators of housing loans in the country.

·      As at June 30, 2015, HDFC had gross loans outstanding of Rs. 2,589.88 billion (US$ 40.60 billion). Since inception, HDFC has financed 5.1 million housing units. 79% of shareholders in HDFC are foreign investors. HDFC's market capitalisation as at June 30, 2015 stood at US$ 32 billion.

·      Over the years, the HDFC group has emerged as a strong financial conglomerate in the Indian capital markets with a presence in banking, life and general insurance, asset management, venture capital and education finance.

About HDFC Life

·      HDFC Life was established in 2000 and was the first private life assurance company to be granted a licence following the liberalisation of the Indian insurance market.

·      HDFC Life is India's second largest private life company by new business received premium, with a market share of 15.8% among the private players for the 12 month period ending 31 March 2015, supported by strong bancassurance distribution and a diversified product range.

·      HDFC Life offers a range of 35 products which meet diverse customer needs, such as protection, pensions, savings, investment, health insurance and Group solutions.

·      The company continues to have one of the widest reaches among new insurance companies, with over 414 branches in India and 8,300+ partner branches.

 

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