HDFC Standard Life to begin unit in DIFC

HDFC Standard Life Insurance Company, a subsidiary of Housing Development Finance Corporation (HDFC), has incorporated a wholly-owned subsidiary in the Dubai International Financial Centre (DIFC). Called HDFC International Life and Re Company Ltd (HILRCL), it will have an initial capital outlay of USD12.33 million.

HDFC, in a notice to the Bombay Stock Exchange, said HILRCL will operate in DIFC, and will shortly commence its business operations, subject to completion of further regulatory formalities for obtaining the final licence from the Dubai Financial Services Authority.

HILRCL would be in the business of offering reinsurance capacity to ceding insurers and may also foray into directly underwriting insurance contracts, subject to receipt of necessary approvals. It would initially offer reinsurance capacity in the UAE and subsequently expand to other jurisdictions.

In August 2015, HDFC said that subject to receiving all necessary regulatory approvals, UK-based Standard Life will acquire nine percent of the shares of HDFC Life from it at INR95 per share.

As a consequence, Standard Life will increase its shareholding in HDFC Life to 35 percent from 26 percent at present. Accordingly, HDFC’s shareholding in HDFC Life would then stand at 61.65 percent.