Aegon Religare Life Needs About 
100 Crore Fresh Capital
New Delhi: Private sector insurer, Aegon Religare Life Insurance, will need about 
100 crore of fresh capital this fiscal, including 25 crore within the next couple of months, to meet the regulatory requirements.
However, there is no clarity as yet on infusion of the much-needed funds amid talks of differences between the foreign and domestic partners over this issue, sources close to the development said.
At its recent meeting earlier this month, the board of Aegon Religare Life Insurance (ARLI) asked the two major shareholders (Dutch insurance giant Aegon and domestic partner Religare) to expedite their decision on capital infusion.
The board was informed that the Annual Operating Plan for 2012-13 calls for fresh capital of close to 100 crore this fiscal to meet regulatory capital requirements, one-fourth of which would be required to be infused by July 2012.
When contacted, Aegon and Religare did not reply to specific queries on whether the two partners would provide or not the required capital for the business, which was yet to turn profitable and needed urgent capital infusion.
However, they said in a joint statement that "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 further said in the joint statement.
Specific queries about differences between two partners and other business-related issues remained unanswered.
Religare holds 44 percent stake in the company, while Dutch insurance giant Aegon has 26 percent holding and the remaining 30 percent are with another domestic shareholder.
Amid talks of differences between the foreign and domestic promoters over the fund infusion, speculations have also surfaced about the overseas partner mulling an exit, although Aegon has denied any such move on its part and has said it remains committed to the venture.
The company's paid up capital stood at 1,135 crore after a recent infusion of 60 crore in January 2012.
Source: PTI
100 crore of fresh capital this fiscal, including 25 crore within the next couple of months, to meet the regulatory requirements.
However, there is no clarity as yet on infusion of the much-needed funds amid talks of differences between the foreign and domestic partners over this issue, sources close to the development said.
At its recent meeting earlier this month, the board of Aegon Religare Life Insurance (ARLI) asked the two major shareholders (Dutch insurance giant Aegon and domestic partner Religare) to expedite their decision on capital infusion.
The board was informed that the Annual Operating Plan for 2012-13 calls for fresh capital of close to 100 crore this fiscal to meet regulatory capital requirements, one-fourth of which would be required to be infused by July 2012.
When contacted, Aegon and Religare did not reply to specific queries on whether the two partners would provide or not the required capital for the business, which was yet to turn profitable and needed urgent capital infusion.
However, they said in a joint statement that "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 further said in the joint statement.
Specific queries about differences between two partners and other business-related issues remained unanswered.
Religare holds 44 percent stake in the company, while Dutch insurance giant Aegon has 26 percent holding and the remaining 30 percent are with another domestic shareholder.
Amid talks of differences between the foreign and domestic promoters over the fund infusion, speculations have also surfaced about the overseas partner mulling an exit, although Aegon has denied any such move on its part and has said it remains committed to the venture.
The company's paid up capital stood at 1,135 crore after a recent infusion of 60 crore in January 2012.