Religare, a Ranbaxy group company providing financial services, has joined hands with Dutch insurer Aegon to set up life insurance and asset management venture in the country. The joint venture will invest over Rs 1,000 crore in the initial phases of the project.
While Religare will hold 44 per cent stake in the life venture, Aegon will own 26 per cent and Bennett Coleman, an investor, the balance. The asset management venture has been structured on an equal ownership basis between Religare and Aegon.
The joint venture marks the entry of yet another foreign insurance player into the country. Allianz, New York Life, Prudential, Standard Life, AIG, Aviva, Axa, Met Life and ING are all multinational insurance companies that have joint venture business in the country.
Religare sources said the venture would be operational within three months of obtaining the Insurance Regulatory and Development Authority approval.
"We are very happy to join hands with Aegon to establish business in the high growth areas of life insurance and asset management. It demonstrates our long-term commitment to the financial services sector," said Malvinder Mohan Singh of the Ranbaxy group.
"India is an important market for Aegon given the significant growth potential for the products and services we provide. We are confident that with Religare as our partner we can build on our respective capabilities to maximise the opportunities emerging across the country," Alexander Wynaendts, member, executive board, Aegon N V, said.
Religare has interests in equities, commodities, portfolio management, investment banking, corporate finance, mutual fund distribution, insurance broking and personal credit.
The company provides services through its strong network of more than 272 branches and 580 partner locations, covering over 300 towns and cities across the country.
The company was expanding its financial business both at home and overseas, said a company release.