Religare Enterprises Limited (REL), the holding company for one of India’s leading diversified financial services groups, has decided to exit Aegon Religare Life Insurance Company by selling its 44% stake to one of the partners BCCL (Bennett, Coleman and Company Limited).
The joint venture, Aegon Life Insurance Company is between Religare, BCCL and Aegon. Post transaction, Aegon would increase its stake in the joint venture to 49%; while the Bennett, Coleman and Company Ltd would acquire the entire 44 % from Religare. However, the transaction is subject to regulatory nods from CCI, FIPB and IRDA.
The joint venture was formed in year 2008.
The parliament has recently passed the Insurance Laws (Amendment) Bill which seeks to raise FDI (foreign direct investment) in private sector companies to 49% from earlier capping of 26%.
Post passage of the Bill several foreign partners have announced raising their stakes in insurance joint ventures that would definitely boost the investment starved Indian insurance sector. Some of them are in the process of seeking various regulatory approvals.