AEGON RELIGARE LIFE TO GET RS 370-CR CAPITAL INFUSION

Mumbai: Aegon Religare Life Insurance will receive a capital infusion of Rs 370 crore from its promoters in the first year of operation. The company, which launched operations over a month ago, is a joint venture between Religare, Aegon and Bennett and Coleman. It has started off with a capital base of Rs 200 crore.

Mr Rajiv Jamkhedkar, CEO, Aegon Religare Life Insurance, said that the bulk of the capital would be invested in technology as well as for setting up branches. Religare holds a 44-per cent stake in the venture, Aegon 26-per cent stake and Bennett and Coleman the balance 30 per cent.

Headquartered in Hague, Aegon has 41 million customers in 21 markets, which are spread over the Americas, Europe and Asia.

Distribution
Aegon Religare has begun with 38 branches which will be expanded to 51 in the first year. “We expect to have 60,000 customers and receive over Rs 100 crore of new business premium in the first year. We hope to see all our branches break even in three years,” Mr Jamkhedkar said.

Aegon Religare plans to have a multi-distribution strategy which includes agents, corporate agents and the direct channel. The company’s promoter, Religare, will also be selling insurance products at its 600 branches. Under the direct channel, the company will have around 1,000 employees who will sell insurance as ‘relationship managers’.

The company also plans to set up an ‘Aegon Religare University”, which will offer beginner and advanced courses in insurance. “This may take around three years to set up. We may offer these courses either on-line or off-line,” Mr Jamkhedkar said.

Aegon Religare has launched one term insurance product and three unit-linked insurance plans. “Our next focus will be on rural and social, pension and health products,” he said.

Source: The Hindu Business Line