AEGON Religare Life needs Rs 100 crore fresh capital infusion
Leading insurer AEGON Religare Life Insurance will need approximately Rs100 crore fresh capital infusion this fiscal year, including Rs 25 crore within the next few months, to meet the regulatory requirements.
If sources are to be believed, there is no clarity as yet on infusion of the fresh capital amid talks of differences between the partners.
AEGON Religare Life Insurance is a joint venture between Dutch insurance giant AEGON and Indian company Religare. At its recent meeting this month, the board of the insurer asked the two major shareholders to speed up their decisions on much needed capital infusion. The board was informed that the Annual Operating Plan for the fiscal year 2012-13 calls for fresh capital infusion of approximately Rs 100 crore to meet regulatory capital requirement in which Rs 25 crore would be required to infuse by July’ 12.
In a joint statement, AEGON and Religare said, “Religare and Aegon are both committed to life insurance business and to serving the life insurance needs of the people of India. Both partners have worked together and have provided support to the joint venture in their respective area of expertise and continue to support our JV in same manner.”
“We continue to work collaboratively to ensure the best strategic course for Aegon Religare Life Company given the significant opportunities and challenges in the market today,” they added.
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