Bandhan Financial Holdings set to acquire Aegon Life Insurance

Bandhan Financial Holdings Limited has entered into a definitive agreement with Aegon India Holding and Bennett, Coleman & Company Limited (BCCL) for acquisition of the entire shareholding of the two entities in Aegon Life Insurance Company Limited, a statement by it said on Tuesday.

Upon completion, this will mark Bandhan Financial Holdings' foray into the country's life insurance sector in addition to their presence in banking and mutual fund sectors, it said.

The acquisition is subject to receipt of necessary regulatory approvals.

Aegon Life, a digitally focused life insurance company serving around 300,000 customers, witnessed a competitive bidding process in which various investors participated. Bandhan Financial Holdings, the promoter company of Bandhan Bank, was selected as the successful bidder to acquire Aegon Life.

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The agreement envisages continuity of the current management team and existing employees, which will help in actively developing and supporting Aegon Life's strategy under the new ownership. It will be supplemented by Bandhan's brand and distribution reach, which will aid Aegon Life to enhance its customer base, the statement said.

The managing director of Bandhan Financial Holdings Limited, Karni S Arha said "Bandhan has always focused on financial inclusion and making formal financial services available to the general people. We believe that life insurance in the country is a large multi-faceted market and together with the demographic advantage as well as favourable economic outlook, it presents a significant business opportunity."

"The acquisition of Aegon Life provides us an opportunity to enhance our portfolio of products and services in the financial services sector combined with access to an established technology," he added.