BFHL has completed its acquisition of Aegon Life, marking its entry into the Indian life insurance sector.
The deal, announced in July 2023, received approval from the Insurance Regulatory & Development Authority earlier this month.
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Aegon Life, which was a JV between Aegon and Bennett, Coleman & Company, is known for its digital underwriting and efficient life insurance solutions.
The digital life insurer expects the acquisition to ensure that its commitment to innovation will be upheld on a life insurance platform with a strong digital distribution network.
BFHL will retain the management team and staff of Aegon Life.
For BFHL, the holding entity of Bandhan Bank, this acquisition marks a strategic expansion into the life insurance market and a broadening of its financial services offerings.
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By GlobalDataThe move is expected to expand BFHL’s financial services offerings, complementing its existing operations in banking and mutual funds.
BFHL managing director Karni Singh Arha said: “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.
“We deeply appreciate Aegon Life’s digital capabilities and its experienced management team and together we look forward to leveraging their digital strength with Bandhan’s distribution expertise to grow this business.”
Aegon Life MD and CEO Satishwar B said: “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.
“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.”
In other major Indian insurance sector news, last week, private sector lender Kotak Mahindra Bank signed a $670m (Rs55.54bn) deal to divest a 70% stake in its general insurance arm to Zurich.
