This was one of the foreign direct investment (FDI) proposals approved by the government on March 7. Following this acquisition, Aviva Plc’s stake in the joint venture has increased to 49 per cent.
This transaction values Aviva Life at approximately Rs 4,087 crore.
The Insurance Laws (Amendment) Act, passed in 2015, now allows up to 49 per cent FDI in insurance companies in India. Earlier, only 26 per cent FDI was allowed in the insurance sector.
According to provisional data from the Life Insurance Council, Aviva Life saw a 42 per cent fall in new business premium during the year 2015-16.
The growth in new business premium was Rs 321 crore as on March 2016, against Rs 557 crore, as on March 2015.
The number of policies sold also saw a decline of 42 per cent, from 84,805 as of March 2015 to 49,523 as of March this year.
Curated from Aviva Plc raises stake to 49% in Indian venture