Aviva mulls raising stake to 49 Per cent in Indian joint venture

Aviva Plc today said it is planning to increase stake to 49 per cent from existing 26 per cent in its joint venture business in India.

Mumbai, Aug 6: Aviva Plc today said it is planning to increase stake to 49 per cent from existing 26 per cent in its joint venture business in India. Aviva India is a joint venture between Dabur Invest Corp (DIC) and Aviva with the latter currently holding a 26 per cent stake in the venture. Current paid up capital amounts to Rs 2,004.9 crore. “The increase of Foreign Direct Investment limits in India from 26 per cent to 49 per cent has made the Indian insurance market much more attractive. We intend to increase our stake in the Aviva India joint venture business. We are finalising our application to do this and expect to complete within the next six months,” Aviva Europe and India CEO David McMillan said in a release issued here.

Following the announcement, Aviva India Managing Director and CEO Trevor Bull said, “With insurance penetration being a little over 3 per cent, India presents a huge opportunity for insurers to help more people.” “As we develop our future material growth plans, we plan to support customers’ changing patterns of life by introducing more relevant products, widen our digital platform to improve both distribution capabilities and how we interact and serve customers as well as increasing the breadth of customers we serve,” he said.

Aviva provides life insurance, general insurance, health insurance and asset management to over 34 million customers across 16 markets worldwide. In the UK, Aviva is the leading insurer serving one in every four households and has strong businesses in select markets in Europe, Asia and Canada. The company’s shares are listed on the London Stock Exchange and are a member of the FTSE100 index. Aviva’s asset management business, Aviva Investors, provides asset management services to both Aviva and external clients and manages over 245 billion pound in assets.