Bandhan Financial Holdings to acquire Aegon Life Insurance

financialexpress.com:

Bandhan Financial Holdings (BFHL) has entered into a “definitive agreement” with Aegon India Holding and Bennett, Coleman & Company for the acquisition of the entire shareholding of Aegon and BCCL in Aegon Life Insurance Company.

The acquisition is subject to the receipt of necessary regulatory approvals and customary closing conditions, according to a statement.

Aegon Life’s new business premium stood at Rs 11.45 crore for the last financial year, registering a 31.3% year-on-year fall, according to the Life Insurance Council’s data.

Currently, the insurance company has around 300,000 customers.  

BFHL, the holding company of private sector lender Bandhan Bank, was selected as the successful bidder to acquire Aegon Life in a competitive bidding process which witnessed participation from various investors. “Upon completion, this will mark BFHL’s foray into life insurance sector in India, in addition to its presence in banking and mutual fund sectors, thereby enabling an important step towards creation of a diversified financial services group, which caters to the needs of all Indians,” the statement said.

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.

Karni S Arha, managing director of Bandhan Financial Holdings, said, “We believe that life insurance in India is a large multi-faceted market and together with the demographic advantage as well as favorable economic outlook, it presents a significant business opportunity.”

According to Arha, the acquisition of Aegon Life provides BFHL an opportunity to enhance its portfolio of products and services in the financial services sector.