Compelo Insurance is using cookies

We use them to give you the best experience. If you continue using our website, we'll assume that you are happy to receive all cookies on this website.

ContinueLearn More
Close
Dismiss

Birla Sun Life, HDFC and Max compete for Aviva’s stake in Indian JV

Aviva, a UK-based global financial services company, has reportedly shortlisted three insurance firms to divest 26% stake in its Indian insurance joint venture (JV) Aviva India, as part of a strategy to quit operations in the country.

Aviva

The shortlisted firms include Max Life Insurance, Birla Sun Life Insurance and HDFC Life Insurance, and due diligence is expected to start soon, media sources reported.

Aviva India was formed by the British firm and Indian FMCG company Dabur in 2002. Aviva is offloading its stake due to difficulty in managing profitability due to intense competition in the Indian market amid rising operational costs.

It is believed that Dabur is also considering offloading its stake in the life insurance JV.

Aviva has hired JPMorgan and Deutsche Bank to manage the share sale process.

Aviva India markets its insurance products and services through IndusInd Bank, RBS and Punjab & Sind Bank as well as over 30 cooperative banks and regional rural lenders.

Managing a distribution network of 134 branches, Aviva India collected INR2.95bn ($48.91m) from new business during the nine months ended 31 December 2013.

In 2013, Dutch financial conglomerate ING decided to exit ING Vysya Life Insurance Company by divesting its 26% shareholding to Exide Industries.

Earlier in 2012, New York Life, the US-based insurer exited India by disposing its 26% stake in its JV company to Japan’s Mitsui Sumitomo Insurance Company.
—————————————————————————————————————————————————————————
Image: St. Helen’s, Aviva’s world headquarters in London. Photo: courtesy of Colin.