Media365
UK-based insurer Aviva Plc has acquired the remaining 26 per cent stake in Aviva Life Insurance Company India Ltd from its joint venture partner Dabur Invest Corp, taking full ownership of its Indian life insurance business following India’s decision to allow 100 per cent foreign direct investment (FDI) in the insurance sector.
The acquisition comes after the Indian government recently increased the FDI limit in the insurance sector from 74 per cent to 100 per cent of paid-up equity capital, enabling foreign insurers to fully own their Indian operations.
Aviva, which entered the Indian insurance market in 2001 through a joint venture, has progressively increased its ownership in line with regulatory reforms. The company raised its stake to 49 per cent in 2016 after the FDI cap was increased to 49 per cent, and further to 74 per cent in 2022 when the limit was revised.
With the latest transaction, Aviva now owns 100 per cent of its Indian life insurance business.
The London-headquartered insurer did not disclose the financial details of the deal, stating that the acquisition is not expected to have a material financial impact on the group.
India’s decision to allow 100 per cent foreign ownership in the insurance sector is aimed at attracting global capital, expanding insurance penetration and strengthening long-term investment in the country’s financial services industry. The latest move is expected to encourage more foreign insurers operating through joint ventures to increase their ownership in Indian insurance businesses.
