Karni S Aaha, MD, Bandhan Financial Holdings, said, “The acquisition of Aegon life provides us an opportunity to enhance our portfolio of products and services in the financial services sector.’’
Mumbai/Kolkata:
After a year of search, the promoters of Aegon Life, one of the small sized life insurance companies, have sold their entire stakes to Bandhan group that owns a bank and a mutual fund company.
`Aegon India Holding B.V. (“Aegon”) and Bennett, Coleman & Company Limited (“BCCL”) have entered into a definitive agreement with Bandhan Financial Holdings Limited, for the acquisition of the entire shareholding of Aegon Life insurance Company Limited (“Aegon Life”), subject to receipt of necessary regulatory approvals and customary closing conditions, said a statement from Aegon.
Aegon holds 56% stake Aegon Life Insurance Company and the financial details of the deal are not known yet.
Bandhan Financial Holdings will now seek regulatory approvals from banking regulator Reserve Bank of India and insurance regulator IRDAI.
The sale of its stake in the joint venture in India underscores Aegon’s commitment to exit from non-core businesses, said Aegon.
Karni S Aaha,MD, BFHL said, “The acquisition of Aegon life provides us an opportunity to enhance our portfolio of products and services in the financial services sector.’’
“I would like to thank our Aegon Life colleagues for their commitment and professionalism in meeting the needs of our customers in India,” said Marco Keim, CEO of Aegon International. “I believe that Bandhan will be a good home for the employees and policyholders of Aegon Life and I wish them all the success in the future.”
The agreement envisages continuity of the current management team and existing employees, which would help in actively developing and supporting Aegon Life’s strategy under BFHL’s ownership. This will be supplemented by Bandhan’s brand and distribution reach, which will aid Aegon Life to enhance its customer base, said Bandhan group.
Aegon life pursues a digitally focused strategy serving around 300,000 customers. It provides products that include term, savings, unit-linked, and health plans. The life insurance company was established in 2008, has around 250 employees, and is headquartered in Mumbai.