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Digital life insurance company, Aegon Life has announced the transfer of the shareholdings of Aegon India Holding B.V. (“Aegon”) and Bennett, Coleman & Company Limited (“BCCL”) to Bandhan Financial Holdings Limited (BFHL). With this, Bandhan Financial Holdings is now a promoter of Aegon Life Insurance.

The holding company of Bandhan Bank had received the final approval on the acquisition from the Insurance Regulatory & Development Authority (IRDAI) earlier in February. While Bandhan received the Reserve Bank of India’s go-ahead four weeks before that.

This strategic acquisition marks Bandhan group’s entry into the Indian life insurance sector, complementing its existing presence in banking and mutual funds.

This aligns with Bandhan’s vision to build a comprehensive financial services conglomerate that addresses the diverse needs of Indian consumers, the company said.

The agreement envisages continuity of the current management team and existing employees which would help in developing and supporting Aegon Life’s strategy under BFHL’s ownership.

“India’s life insurance market, given its size and potential, is crucial to becoming a diversified financial services group. Given Bandhan’s focus of making formal financial services available to masses, this acquisition further enhances that endeavour,” Karni Singh Arha, Managing Director, BFHL said.

BFHL is wholly-owned by Bandhan Financial Services Limited (“BFSL”), a Non-Banking Finance Company – Core Investment Company (“NBFC CIC”). Incorporated in 2014, BFHL is the promoter and an associate company of Bandhan Bank Limited (“Bandhan Bank”).

It is registered with the Reserve Bank of India (“RBI”) under the 2013 Licensing Guidelines, as an NBFC categorized, as a Non-Operative Financial Holding Company (“NOFHC”).

BFHL currently holds ~39% stake in Bandhan Bank. BFHL is also the sponsor of Bandhan Mutual Fund (“Bandhan Mutual Fund”), holding 60% stake in Bandhan Asset Management.

This marks an exhilarating new beginning – 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, Satishwar B., MD and CEO, Aegon Life added on a similar line.

As we join the Bandhan family, we extend heartfelt thanks to Aegon and BCCL for their unwavering support, and we eagerly anticipate a future filled with exciting possibilities, he added.

  • Published On Feb 26, 2024 at 06:55 PM IST

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