BFHL has secured the final regulatory approval to acquire Aegon Life Insurance, reported the Economic Times (ET), citing two sources privy to the development.
The holding company of Bandhan Bank, which already has a presence in banking and mutual funds, received the nod from the Insurance Regulatory & Development Authority (IRDAI) earlier last week, sources said.
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With this approval, BFHL has crossed the last regulatory hurdle, having obtained consent from the Reserve Bank of India a few weeks ago.
Aegon Life, a joint venture between Aegon and Bennett, Coleman & Company, is known for its digital focus in the life insurance domain.
The acquisition of Aegon Life, which attracted interest from multiple investors, was first announced in July 2023.
Its integration into BFHL is expected to be a strategic move, diversifying the latter’s financial services offerings.
The agreement includes provisions for the continuity of Aegon Life’s current management team and employees. This is intended to support the company’s strategy and growth under the new ownership.
Bandhan Financial Holdings MD Karni Singh Arha told the ET: “We expect the change of control to take effect in the coming weeks from Aegon and Bennett, Coleman & Company to the Bandhan Group. The life insurer has established credentials in the digital space. We would like to leverage that experience and develop it further.
“Additionally, we will look to ramp up other distribution partnerships – be they bancassurance or broking, among others. Given Bandhan’s experience and expertise of driving financial inclusion among the masses, this particular addition would be most consequential.”
