UK-based Aviva plc has acquired an additional 25% stake from Dabur Invest Corp in its joint venture Aviva Life Insurance Company India (ALICIL) to raise its total stake to 74%.
The transaction has allowed Aviva to become the majority shareholder in the JV, while it has resulted in a dilution of stake of FMCG major Dabur India promoters, the Burman family, to 26% from 51%.
Aviva Life Insurance Company India is a joint venture between Dabur Invest Corp and Aviva.
“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 plc said in a statement. The deal value was not disclosed.
Aviva received approvals from the relevant competition and regulatory authorities for increasing its stake in ALICIL, which posted a 34.52% year-on-year rise in its first-year premium at Rs 296.20 crore for the last fiscal.
Aviva plc is UK’s leading insurance, wealth & retirement business and it operates in the UK, Ireland and Canada. It also has international investments in Singapore, China and India. As on June 30, 2022, total group assets under management at Aviva Group were £353 billion.
ALICIL becomes the second life insurance company in India to have a 74% stake held by a foreign company.
Last week, Ageas Federal Life Insurance said it has become the first life insurance company in the country to have a 74% stake held by a foreign partner after Belgium-based Ageas Insurance International completed the acquisition of the 25% stake in the life insurance joint venture from IDBI Bank. Ageas acquired the additional 25% stake of IDBI Bank in Ageas Federal Life Insurance for a total cash consideration of Rs 5.8 billion.