Mr TR Ramachandran, the CEO and Managing Director of Aviva India has announced that a further capital infusion of Rs. 116 crores into its life insurance business in India.
With this additional cash infusion the total paid up capital of the life insurer has gone up to 2004 crores. The move shows that the company is focussed on its long term strategy in India. The additional funds would be used to bolster its current business.
A lot of life insurance companies had to re-look their business strategies after the new regulations on ULIPs came into effect. Most life insurance companies had to change their forecast numbers and even pushback their break-even dates. The revised ULIP norms had drastically cut down on the overall charges that could be levied on Unit Linked Insurance Plans, among a host of other customer friendly changes which were prescribed.
Aviva Life Insurance Company has performed well and has shown a growth in premium collection of Rs. 24 crores in the first 6 months of this year as compared to the last financial year. In September 2010, the company increased its premium collection by 35 crores. This goes to show that even though there is a reduction in charges, the life insurance business can grow as it results in increased customer awareness and satisfaction.