The decision was taken
after a strategic review of the business.
Religare
Enterprises has decided to exit its joint venture with Aegon in its life
insurance business. The decision came after a strategic review of the company.
Currently,
Religare holds 44% equity in Aegon Religare Life Insurance. Started in 2008, Aegon
Religare Life Insurance started is a joint venture between Aegon, Religare and Bennett,
Coleman and Company.
Religare
Enterprise has announced its desire to exit the joint venture through an announcement
on Bombay Stock Exchange (BSE). Both companies Religare and Aegon have agreed
that Religare will exit once a replacement shareholder authority is identified
and approved by IRDA. In the meantime, Religare remains fully committed to the
joint venture, said the company.
A
senior official of Aegon Religare Life Insurance confirmed this development to Team
Cafemutual.
A
few days back, IRDA had imposed a fine of Rs.40 lakh on Aegon Religare Life
Insurance for violation of various distribution norms like soliciting business
with unauthorized agents, luring employees of broking firms with gifts/rewards,
making additional payouts to its corporate agents for advertisement and sharing
data base of prospects with its group company called Religare Macquarie Wealth
Management.
Aegon
Religare incurred loss a loss of Rs.13 crore in the first quarter of current
financial year. The company posted a loss of Rs.15 crore in FY 13-14 and Rs.17
crore in FY 2012-13.
In
2011, Aegon exited its joint venture with Religare in the asset management
business which was later took over by Invesco.
Source: Team CafeMutual