Global financial services major Aegon on Monday said it has completed the sale of its 56 per cent stake in its joint venture in India — Aegon Life Insurance — to Bandhan Financial Holdings Limited.
“The sale was announced in July 2023 and highlights Aegon’s commitment to withdrawing from non-core businesses. Following the receipt of regulatory approvals, the transaction was closed on February 23,” Aegon said.
Bandhan Financial Holdings now becomes a promoter of Aegon Life Insurance following the transfer of shareholdings from Aegon India Holding B.V and Bennett, Coleman & Company Limited.
The strategic acquisition marks the Bandhan group’s entry into the Indian life insurance sector, which has posted a 12.7 per cent growth in first year premium in the April-January period of 2023-24, excluding LIC. Having already forayed into mutual funds with the acquisition of IDFC AMC, Bandhan is planning to build a comprehensive financial services company.
“India’s life insurance market, given its size and potential, is crucial to becoming a diversified financial services group. Given Bandhan’s focus on making formal financial services available to the masses, this acquisition further enhances that endeavour,” said Karni Singh Arha, managing director, BFHL.
BFHL is the promoter of Bandhan Bank with a 39 per cent stake in the bank.
“The synergy between our tech-centric operations and Bandhan’s extensive distribution capabilities will expand the reach of our innovative insurance solutions across the nation,” said Satishwar B, MD and CEO, Aegon Life.
