Aviva is the third foreign player to hike its stake in an Indian insurance JV
UK major Aviva plc announced that it has acquired an additional 25 per cent stake from Dabur Invest Corp. in its joint venture in India, Aviva Life Insurance Company India Limited (ALICIL) and now holds 74 per cent in ALICIL.
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 has received approvals from the relevant competition and regulatory authorities.
Recently, Asit Rath has taken over as CEO of the Indian JV.
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.