Aviva to increase stake in Indian business to 49%

With government increasing FDI limit in insurance to 49%, the British insurer wants to cash in on the opportunity

Aviva Plc plans to increase its stake in its India business to 49 per cent, company officials said. Aviva India (life insurance) is a joint venture between Dabur Invest Corp and Aviva with the latter currently holding a 26 per cent stake in the venture.

Till now, only AXA has got the approval from Foreign Investment Promotion Board to hike its stake to 49 per cent in its insurance joint ventures, Bharti AXA Life and Bharti AXA General Insurance.

David McMillan, CEO Aviva Europe and India, said 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," he said.

In a statement, Aviva said it was one of earliest advocates for the passage of the insurance Bill. The Bill was passed in Parliament in March.

Trevor Bull, MD and CEO, Aviva India, said as the company develops future material growth plans, it plans to support customers’ changing patterns of life by introducing more relevant products for the customers.