• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi, Dec. 15 British insurer Aviva Plc said on Monday that it was ready to raise its 26 per cent holding in the Indian life insurance joint venture, Aviva Life Insurance Company India Ltd, once the Government rules changed.

In line with Government regulations, Aviva has 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent. The joint venture is now capitalised at Rs 1,348.8 crore.

Aviva Plc and Dabur Group have already agreed that the foreign partner could raise stake up to 49 per cent once the Government rules allow increased foreign direct investment in the insurance sector.

FDI is currently capped at 26 per cent for this sector.

Aviva Plc also sees good scope for growth in the Asia-Pacific region, which accounted for 11 per cent of its global sales and 3 per cent of its global profits in end-December 2007.

“India and China have been in our focus for the last six years. Insurance here (India) is under-penetrated. The upside in this Indian market is enormous for us,” Mr Andrew Moss, Group Chief Executive, Aviva Plc told a press conference here.

Mr T.R. Ramachandran, Chief Executive Officer, Aviva Life Insurance Company India, said the company was expecting a 35 per cent growth in the first year premiums during fiscal 2009-10 as against the likely 9 per cent growth in first year premium income this fiscal.

The exit of two bancassurance partners — Centurion Bank of Punjab and Canara Bank — has impacted the performance of Aviva Life Insurance during calendar year 2007 and some part of 2008.

Mr Ramachandran said that the company’s plans to have direct sales teams and also expand its independent financial advisors network would help achieve the targeted 35 per cent growth in first year premiums in fiscal 2009-10. Plans are afoot to recruit 1,000-1,500 persons during the remaining months of the current financial year. The current headcount of Aviva Life Insurance India is pegged at 8,600.

Meanwhile, Mr Moss said that he expects the January-March 2009 quarter to be the “most difficult” for Aviva Plc as customers turn cautious and scale back spending on products relating to property and financial services following the global financial meltdown.

He also noted that the “topline sales” growth are likely to remain flat in the October-December quarter. “We are confident (about meeting business targets) but have to be little cautious,” Mr Moss said, adding that the company had to thrice re-work their plans in September and October on account of the global financial turmoil.

More Stories on : Life Insurance

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line