Aviva plans foray into non-life, fund biz

London-based insurance behemoth Aviva is mulling to foray into general insurance and asset management business in India.

“We are looking at non-life business. Besides, the company is exploring possibility of entering into asset management business,” Aviva Group Chief Executive Andrew Moss told reporters here. Without giving a time-frame, Moss said the ventures will come up in due course of time.

Moss said the economic slowdown had some impact on the company’s top line and the next six months would be difficult. “We may see (December quarter) sales growth to be flat or a bit down. The March quarter is likely to be even more difficult,” Moss said.

 

Aviva is already present in India through its life insurance joint venture, in which it has a 26 per cent stake, while the remaining stake is held by the Dabur Group.

Aviva Life Insurance India expects its first-year premium to grow by 9-10 per cent in the current financial year, mainly on account of an impact of the economic slowdown and departure of key bancassurance partners in the country. It had recorded a 46 per cent growth in the first-year premium at Rs 1,059 crore in 2007-08.

The insurer, which got over three-fourth of its business from unit-linked insurance plans (Ulips), was impacted by customers’ risk aversion due to volatility in the Indian stock market this year. Like other players, the company also saw some redemption in the Ulip portfolio this year, its CEO and Managing Director T R Ramachandran said.

“We expect the top line to grow 9-10 per cent in 2008-09. The growth is likely to be 30-35 per cent in the next financial year,” Ramachandran said.

The company plans a bounce-back in 2009-10 by launching more long-term products, pension plans, child plans and micro-insurance products. Besides, the company plans to diversify the distribution channel by going in for more strategic tie-ups with firms with a wide point of presence, strengthen agency force and appoint more direct sales persons.

The company plans to hire about 1,500 direct sales personnel by March next year.