Aviva Plc becomes majority shareholder in its India joint venture

NEW DELHI: Aviva Plc on Friday said it has acquired an additional 25% stake from Dabur Invest Corp. in its joint venture in India, Aviva Life Insurance Company India Ltd (ALICIL). Following this, Aviva’s shareholding has increased to 74% in ALICIL.

Terms of the transaction were not disclosed.

At present, the upper limit for foreign direct investment (FDI) in companies that write insurance cover is 74%.

According to the UK-headquartered group, 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.

Aviva Life Insurance Company India Ltd is a joint venture between Dabur Invest Corp, one of India’s oldest business houses, and Aviva International Holdings Limited, a UK-based insurance group. Aviva International has been associated with India since 1834. Aviva Plc is the UK’s leading Insurance, wealth and retirement business.

Founded 138 years ago, the Burman family-owned Dabur is known for brands, including Vatika hair oil, Real fruit juices and Hajmola digestive candy, among other fast-moving consumer goods (FMCG). The family’s private holdings range from restaurants to home healthcare to life insurance.