Aviva Life Insurance today announced that it has increased its capital base by Rs 77 crores, taking the total paid-up capital to Rs 320 crores.
Aviva Life Insurance today announced that it has increased its capital base by Rs 77 crores, taking the total paid-up capital to Rs 320 crores. As per government regulations Aviva holds a 26% stake and Dabur 74%.
Aviva Life Insurance has recorded a growth of 118% compared to the last year with New Business Premium Income of Rs 158 crores for the calendar year 2004. Aviva has fared well with 4.1% of the total market share of private players during April-November 2004, up from 3.2% in the same period last year. Aviva is in the 8th position and has overtaken four competitors namely, Kotak, ING Vysya, AMP Sanmar and MetLife.
Commenting on the results, Mr Stuart Purdy, managing director of the company, said: “Aviva has doubled its business in the last 12 months. In 2003, our first full year of operation, we established ourselves as a strong player in the Indian life insurance market. We put in place processes that laid a solid foundation for our long-term growth strategy. In 2004, we have built on our experience and strengthened our processes to be able to sustain growth in the years to come. We have been focusing on developing systems to deliver a high level of service to our customers.”
Mr Purdy, added: “Aviva has been able to rapidly establish its presence in the Indian market by adopting a differentiated approach to sales, distribution, marketing and product strategy. We currently have five bancassurance partnerships, which enable us to have a presence in 131 cities in India. We are confident that the initiatives we have undertaken to achieve higher market share and manage risks better will result in substantial growth in the current year.”
Aviva’s Fund management operation is one of its key differentiators. Operating from Mumbai, Aviva has an experienced team of fund managers and the range of fund options includes Unitised With-Profits Fund and three Unit Linked funds: - Secure Fund, Balanced Fund and Growth Fund. The flagship fund of the company has performed very well with a Compounded Annualised Growth Rate (CAGR) of 32.30% (as on 31 December 2004) since inception (6 June 2002).
The company recorded healthy growth in both direct sales force and bancassurance channels due to adopting a unique approach in terms of sales, distribution, marketing & product strategy, fund performance and employee centricity. Some of the key initiatives include pioneering bancassurance in India, being the first to have an in-house Fund Management team, pioneering innovative Unit Linked products to provide customers flexibility, transparency and value for money, investing in training of financial planning advisers.
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For further information, please contact:
Pooja Garg Khan
Aviva Life Insurance
e-mail: pooja.khan@avivaindia.com
tel: 9811315510
About Aviva
Aviva Life Insurance is a joint venture between Dabur and Aviva. Current paid up capital amounts to Rs 320 crores. Dabur is the 74% shareholder and Aviva the 26% shareholder. Aviva plc is the UK’s largest insurance Group and the world’s oldest insurance Group, with a history dating back to 1696. Today, it is the fifth largest insurer worldwide, with 30 million customers and Ł240 billion assets under management. Prior to nationalization, Aviva was the biggest of the foreign insurers operating in the Indian market.
Founded in 1884, Dabur is one of India’s oldest and largest groups of companies with the Group’s consolidated annual sales in excess of Rs 1,350 crores. A professionally managed company it is the country’s leading producer of traditional healthcare products.
Aviva pioneered the concept of Bancassurance in India, and has leveraged its global expertise in this area successfully in India. Bancassurance has been contributing 70% of the total sales of Aviva India. Through its branches and its Bancassurance partner locations, Aviva products are available in 131 towns and cities across India.
Aviva’s products have been designed in a manner to provide customers flexibility, transparency and value for money. We have been among the first companies to introduce Unit Linked products in the market.
Aviva has a unique need based sales approach through the “Financial Health Check” (FHC). The FHC is a free service administered by our FPAs (Financial Planning Advisers) for a need-based analysis of the customer’s long-term savings and insurance needs. Depending on the life stage and earnings of the customer, the Financial Health Check assesses and recommends the right insurance product for them.
Aviva is also keen to reach out to the underprivileged that have not had access to insurance so far. Through its association with Basix (a micro financial institution) and other NGOs, it has been able to cover close to one and a half lakh lives.