Aviva, headquartered in the UK, has acquired an additional 25% stake in its joint venture in India, Aviva Life Insurance Company India (Aviva India).
Following the acquisition of Dabur Invest Corp’s stake, Aviva’s stake in Aviva India increases to 74%.
The transaction allows Aviva, as majority shareholder, to increase its economic and operational control while continuing to transform the performance of the company.
Aviva has received approvals from the relevant competition and regulatory authorities for the increased stake.
Aviva India is the second Indian life insurance company to hold 74% foreign equity, after Ageas Federal Life Insurance.
Ageas Insurance International’s stake in the life insurance company is now 74% from 49% previously after IDBI Bank sold its entire 25% stake to the Belgium-based company. Federal Bank continues to hold the remaining 26% interest in the insurance joint venture.
In March 2021, the Insurance Act was amended to increase the ceiling for foreign direct investment (FDI) in insurance companies in India to 74% from 49%.
Italian financial services group Generali is the first foreign player to increase its stake in its Indian business, Future Generali India Insurance, to 74% from 49%.
On the life insurance side, in March 2022, Generali completed the acquisition of an approximate 16% stake held by Industrial Investment Trust in Future Generali India Life (FGIL) and the subscription for additional shares in the ‘company. Generali now holds a stake of around 68% in FGIL, which could increase further to 71% by the end of this year, following a new subscription of shares by Generali.