Bandhan group and IIFL group look to jointly acquire Aegon Life Insurance

At a time when everyone is talking about new entities applying for a fresh license to enter the Indian insurance market, there are some entities which are exploring a brownfield entry into the sector. Sources private to the development tell CNBC-TV18 that Bandhan Group and India Infoline (IIFL) group are jointly looking at acquiring Aegon Life Insurance and hence make an indirect entry into the Indian Life Insurance market. According to sources, the embedded value of Aegon Life Insurance is around Rs 430 To 450 Crore and the said transaction is expected to happen at or slightly below the embedded value.

This news follows an earlier report by CNBC-TV18 on March 14, which said Bandhan Group plans to enter the Indian Life And General Insurance Sector.

As per Aegon Life Insurance’s Annual Report (2021-2022), Aegon India Holding owns 49 percent stake in Aegon Life Insurance, Bennett Coleman owns 46.09 percent and Aegon Life Insurance Employee Benefits Trust owns 4.91 percent.

The business at Aegon Life Insurance has been struggling in the last few years with premiums dropping to Rs 17 Crore in FY22 (see table).

IIFL Finance has denied the news, adding that the board has not approved any such event that has become due for disclosure to the exchanges.