HDFC ERGO General Insurance Co. Ltd, the non-life insurance joint venture between HDFC Ltd and ERGO International of Germany, said that it will acquire L&T General Insurance Co. Ltd in an all-cash deal worth Rs.551 crore. Promoter Larsen & Toubro Ltd (L&T) will exit the general insurance business via the deal.

L&T General Insurance, which began operations in October 2010, sells auto, business, home and health cover. The company, with a paid-up share capital of Rs.705 crore, saw a gross written premium of Rs.483 crore during the year ended 31 March, which is 40% higher compared with the previous year. The company has 28 offices served by 800 employees. For the year ended 31 March, the company’s net-worth stood at Rs.142 crore.

The insurer, a joint venture between India’s largest home finance company and Germany’s ERGO International, is currently the fourth largest general insurer in the country. It is primarily engaged in the business of selling insurance for motor, health, personal accident, home, fire, marine, aviation, liability and crop insurance through 108 offices in the country. There are 29 general insurers in the country with state-run New India Assurance being the largest.