British MNC, Aviva PLC which is the 6th largest insurance company in the world has been scouting for potential buyers to sell its 26% stake in the joint venture Aviva India Life Insurance. The word is that Aviva has shortlisted three Indian insurance companies namely, Birla Sun Life Insurance, HDFC Life Insurance and Max Life Insurance to finalise this deal.
Aviva India employs close to 3700 people and has a network of over 135 branches across the country. Aviva is hoping for a 5,000 crore valuation. In 2012, Nippon Life (Japan’s biggest life insurance company) acquired a 26% stake in Reliance Life for a sum of Rs 3,062 crore, valuing Reliance Life at Rs 11,500 crore, ($2.6 billion).
New York Life from the joint venture Max New York Life and DLF from DLF Pramerica are couple of companies that have exited the Indian Insurance sector in the recent past. Some of the concerns being voiced out by the industry are failure of the government to increase Foreign investment limit and regulatory issues.
