Jan. 25 (Bloomberg) -- Sony Corp., the world's second- biggest maker of consumer electronics, will sell variable annuities and other insurance products with Aegon NV as it prepares to sell shares in its financial services unit.

Aegon, the second-largest Dutch insurer, and Sony Life Insurance Co. will form a venture to sell financial products through Sony Life's sales force, banks and other firms starting next January, the two companies said today in statements.

``It's a growing area and a positive move,'' said Merrill Lynch & Co. analyst Tatsuo Majima. ``Still, it seems the timing is a bit late and I don't get a strong impression from Aegon in this business.''

Sony, which backed out of talks to sell half its life insurance unit to Aegon in 2003, plans an initial public offering of Sony Financial Holdings Inc. as early as the year starting April 1, said Kayoko Miyako, a company spokeswoman, declining to comment on the size of the offering or the underwriters.

Sony Financial, formed in 2004, includes Sony Life, Sony Assurance Inc., which sells car insurance over the Internet and by telephone, and Sony Bank Inc. The company may have a market value of 960 billion yen ($8 billion), say analysts including Majima. Sony's corporate rules require that it maintain a stake of at least 50 percent following the IPO.

Japan's annuity market has been growing, driven by variable annuity products following the deregulation of sales through banks in 2002. Variable annuity assets totaled more than 10 trillion yen as of March 2006, and sales were about 2 trillion yen in the six months ended June 30, according to Aegon and Sony Life.

``We are very excited by the prospect of combining our expertise and skills with the highly respected brand and distribution strength of Sony Life,'' Aegon Chief Executive Donald Shepard said in a statement.

Sony Life, formed in 1979, said it earned 290 billion yen from insurance premiums for the six months ended Sept. 30. The company has a payroll of 5,264.

To contact the reporters on this story: Takahiko Hyuga in Tokyo at thyuga@bloomberg.net.

Last Updated: January 25, 2007 04:47 EST