Aviva Life Insurance Company, a joint venture between one of the country’s oldest and largest groups, Dabur, and UK’s largest insurance group – Aviva Plc, is in talks with Syndicate Bank and may sell 30% of its stakes to increase capital. Dabur India owns 74% stakes in the insurance venture while the remaining 26% is owned by Aviva Plc.
Commenting on the media reports of the proposed deal between the two, Mohit Burman, Director of Dabur Group, confirmed that talks are on. He said, “The deal is in process”. A board meeting will take place on Wednesday where a decision will be taken on the stake sale, he added.
Since its foray in the insurance business in 2002, Aviva Life Insurance Company reported profits of Rs 29 crores for the first time, in financial year 2010-11. Their business focus has been driven by a quality led business model focused on Bancassurance. In 2009-10, Aviva India had reported a loss of Rs 345 crores. The company bounced back this in the fiscal 2011 despite various challenges faced by all life insurance companies.
Aviva India introduced a complete suite of protection products, including its online term plan ‘Aviva i-Life’ which provides high life cover and is one of the cheapest term plans available in the markets. In FY 2010-11, Aviva India also launched 7 new traditional products and 4 unit-linked products. Aviva India is partnered with Royal Bank of Scotland Group, Punjab & Sind Bank, IndusInd Bank and DBS to sell its insurance products through their branches.
