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 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.