Page 56 - Insurance Times June 2019

Glossary Do you think the new government will further
Poll boost insurance sector?

Yes Results of Poll in our May 2019 Issue
No Do you think the Insurtech will disrupt insur-
ance selling in India
Can’t say

Dual Interest
Insurance that protects the creditor's Poll Contest, The Insurance Times Yes 80
and the debtor's interest in the 25/1, Baranashi Ghosh Street, Kolkata - 700 007 No 20
Phone : 2269 6035, 2218 4184, 4007 8428
collateral securing the debtor's credit Can’t say 00
Email: insurance.kolkata@gmail.com
transaction. "Dual Interest" includes
insurance commonly referred to as
"Limited Dual Interest."
Standard Life has successfully off-loaded 1.78 per cent stake in HDFC Life Insur-
ance for Rs 1,400 crore. Through offer for sale (OFS) route and the issue man-
Dwelling Property/Personal Liability
aged to sail through successfully with both qualified institutional investors (QIBs)
A special form of package policy
and retail investor quotas seeing full subscriptions, the divestment was done.
composed of dwelling fire and/or allied
lines, and personal liability insurance. The share sale opened for retail investors while QIBs had placed bids. The
portion reserved for retail investors was subscribed by 1.2 times with 42 lakh
Early warning system bids coming from individual investors against 36 lakh shares on offer.
A system designed by insurance industry The QIB portion of the issue was subscribed 3.4 times as institutional inves-
regulators of identifying practices and tors bid for 11.1 crore shares against 3.2 crore shares reserved for them.
risk-related trends that contribute to Shares of HDFC Life fell to Rs 2.4, or 0.6 per cent, to close at Rs 411 apiece.
systemic risk by measuring insurer'
The floor price for the OFS was 390 apiece - a discount of 5 per cent from
financial stability.
the market prices. Brokers say retail investors found some arbitrage oppor-
tunity in the stock since the OFS happened at a discount.
Earned Premium
Post the OFS, the stake of Standard Life in the private insurer is likely to come
Portion of insured's prepaid premium
down from 24.66 per cent to 22.88 per cent, back of the envelope calcula-
allocated to the insurance company's
tions showed. Mortgage lender HDFC, which is also a part of the promoter
loss experience, expenses, and profit
group, currently holds 51.48 per cent in the company.
year- to -date.

56 The Insurance Times, June 2019