Aviva hikes stake in life insurance JV to 74%

UK-based insurer Aviva plc on Friday said it has picked up an additional 25 per cent stake from Dabur Invest Corp in their joint venture Aviva Life Insurance Company India Limited (ALICIL). With this, Aviva has taken its shareholding in the insurance JV to the maximum permissible foreign direct investment (FDI) limit of 74 per cent.

"The transaction allows Aviva to become the majority shareholder, increasing its economic and operational control as it continues to transform the performance of the business," Aviva said in a statement. Aviva Life Insurance Company India Ltd is a joint venture between Dabur Invest Corp and Aviva International Holdings Limited. Aviva International has been associated with India since 1834.

Aviva said it has received approvals from the relevant competition and regulatory authorities. From 2021-22, the government allowed foreign partners to increase their stake in Indian life or non-life insurance JVs to up to 74 per cent from 49 per cent.

Aviva is the third foreign player to hike its stake in an Indian insurance JV. Last week, Belgium-based Ageas Insurance International completed the acquisition of a majority stake in its Indian joint venture Ageas Federal Life Insurance (AFLIC), picking up 25 per cent stake from IDBI Bank for Rs 580 crore.

Before this, in the non-life segment, Italy's financial services major Generali raised its stake in Future Generali India Insurance to 74 per cent in May this year.