The Hindu Business Line : Aviva upbeat on India, plans major expansion

ISTANBUL: Aviva is bullish on its Indian insurance operations. The insurance conglomerate expects its Indian operations to contribute at least 10 per cent of its global operations in the next 10 years.

Accordingly, it has chalked out major expansion strategies for Indian operations, which include strengthening the direct sales force, spreading the branch network, designing innovative products to tap the potential and going aggressively after group business, the Aviva Life International Director, Mr Grant Barrans, said.

He told the visiting journalists that Aviva was targeting to enter the top-5 league of Indian private insurers from the current ninth slot in the next two-three years.

Aviva is not willing to enter the general insurance space in India; however it plans to enter the pension sector as and when it was opened up, Mr Barrans said.

According to Aviva Life Chief Executive Officer, Mr Stuart Purdy, keeping in view the major expansion plans Aviva India was planning to enhance its paid-up capital base to Rs 400 crore from the existing level of Rs 320 crore.

He said capital infusion was not an issue for Aviva Plc or Dabur, the partners in the Indian insurance venture. Aviva Plc was ready to bring in huge amounts if the foreign players were allowed to increase their stake. Aviva, which currently manages assets worth $500-billion worldwide, has also been working on entering into the emerging markets in the Asia-Pacific region such as Malaysia, Taiwan and Sri Lanka. It had chalked out major expansion plans for both China and India.

The Aviva India Director, Direct Sales Force, Mr Shoumitro Roye, said the company plans to increase its financial planning advisors force to over 6,600 from the existing 5,000 and set up another 5 to 6 branches during the current fiscal.

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