Merger with HDFC Life: Sud may quit as Max Life chief
NEW DELHI: Max Life insurance executive vice-chairman and managing director Rajesh Sud could step down in case the insurer is merged with HDFC Life. The new head of the merged entity will be from HDFC Life. Besides, employees at Max Life also fear job cuts at all levels if the merger goes through.
“There is fear among employees — senior and junior — that they may lose jobs…most employees are looking for jobs outside the company,” a senior executive at Max told HT on the condition of anonymity.
Last month, HDFC Life and Max Life announced a proposed merger. If the process goes through, the new entity will become the biggest private insurance company in India. Both HDFC Life and Max Life are among the top four private insurers in the country.
“At this stage, both companies are in the process of completing due-diligence further regarding the confidentiality, exclusivity and standstill agreement…The proposed merger is subject to regulatory and court approvals. It would not be appropriate to speculate on any organisational contours of the merged entity at this stage. Over the last 15 years Rajesh Sud and Max Life employees have created a superior life insurance business, which is recognised as one of the most admired, profitable and well-run life insurance companies,” the company spokesperson said in an email.
Company sources, however, said the performance of each employee was being assessed. At present, there are 9,000 employees across the country.
The merger process between the two insurers will take about a year to complete. Max Life will first merge with Max Financial Services, the holding company which is listed and owns 68% in the insurer. Thereafter, HDFC Life will merge with Max Life.