MUMBAI (Reuters) - Munich Re’s (MUVGn.DE) insurance unit Ergo has agreed to buy nearly 23 percent more in its India joint venture with Housing Development Finance Corp (HDFC.NS) for 11.22 billion rupees ($169.03 million), in the latest deal in India’s insurance sector after foreign ownership rules were eased this year.
After the deal, Ergo’s stake in HDFC Ergo General Insurance Co will go up to about 49 percent - the maximum foreign holding allowed in Indian insurance companies under the new rules - the companies said on Thursday.
India, which previously capped foreign stake in insurance companies at 26 percent, raised the ceiling in March, leading to a flurry of deals in the sector.
HDFC, the top Indian mortgage lender, will own 50.7 percent of HDFC Ergo after the deal.
HDFC’s life insurance joint venture partner, Britain’s Standard Life plc SL.L, said in August it was seeking to raise its stake in that joint venture to 35 percent from 26 percent for 169 million pounds ($252.20 million).
($1 = 66.3776 Indian rupees)
($1 = 0.6701 pounds)
Reporting by Devidutta Tripathy; Editing by Biju Dwarakanath