BCCL to pick 30% stake in Religare-Aegon life JV

MUMBAI: Bennett Coleman & Co Ltd (BCCL) will pick up 30% equity in a proposed life insurance venture promoted by Religare — a Ranbaxy group company, and Dutch insurer Aegon. Religare will have a 44% holding, while Aegon will hold 26% — the maximum permissible holding for a foreign investor in a local insurance firm.

The three companies have reached an agreement on the proposed shareholding structure and will sign a contract in the coming months. The partners are targeting the second quarter of ’07 to operationalise the venture. In June, Aegon and Religare had entered into a memorandum of understanding to set up a life insurance company.

“BCCL is the most prominent media house in the country with interests in print, television, radio and internet. Aegon and Religare cite BCCL’s expertise in creation of brands and strategies in marketing as factors that would significantly enhance the partnership,” said a joint release by Aegon and Religare.

The Hague-headquartered Aegon is one of the largest life insurance and pension companies. Its businesses are concentrated in the US, the Netherlands and the UK. The group is also present in other countries in the West and in China and Taiwan in Asia. Aegon owns the trans-America life insurance group in the US, which it acquired in `99. Religare, which originally operated under the Fortis brand, was rechristened this year.

The company has interest in equity, commodity, portfolio management, investment banking, corporate finance and mutual fund distribution. Religare is also expanding its reach overseas by opening offices outside the country. The company already has 150 branches and 300 partner locations across the country. Religare and Aegon have also entered into an agreement to set up a mutual fund where both the partners will have equal stake.

The mutual fund business is expected to take off in two months time. Aegon had earlier said that India has long been identified as one of its target markets given its sizeable population and rapidly developing economy, the relatively low penetration level of insurance and the continued strong growth rates projected for the insurance sector in coming years.