Aviva Life Insurance announced an increase in its capital base by Rs 100 crores, taking the total paid-up capital to Rs 559 crores.
- Total paid up capital has increased to Rs 559 crores
- Fresh funds reflect Aviva’s spectacular growth in India
- Funds to fuel expansion plans
- Recorded a growth of 118% in new business annualized premium equivalent (APE) last year.
Aviva Life Insurance announced an increase in its capital base by Rs 100 crores, taking the total paid-up capital to Rs 559 crores. As per government regulations, Aviva holds a 26% stake and Dabur 74%. The fresh infusion will help fuel the aggressive growth plans of the company.
Aviva has fared well, increasing its market share to 5.1% during April 2005-March 2006, up from 4.2% during the same period last year. Against the life insurance industry growth rate of 32%, Aviva Life Insurance has recorded a growth of 118% compared to the last year, with new business annualized premium equivalent (APE) of Rs 438 crores for the fiscal year 2005-06. APE is calculated with 100% weightage on regular premium and 10% weightage on single premium.
Stuart Purdy, managing director Aviva India, said: “Aviva has grown at a fast pace since inception in 2002 and we have established ourselves as a strong player in the Indian life insurance market. The additional capital reflects the spectacular growth that we have achieved in India. In the last six months, we have strengthened our DSF and Bancassurance channels, allowing us access to a wider customer base. We have increased our branches from 41 in December 2005 to 107, and increased our Bancassurance partners to 22. We are now reaching out to customers in 378 locations across the country.”
Mr Purdy added: “ Our rapid growth has made us the largest Aviva business in Asia. Insurance is a capital-intensive business and the current capital infusion of Rs 100 crores will allow us to further expand our operations, launch new products and reach out to the target audience.”
Aviva offers an exclusive range of unit-linked products to the customers in India. 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 30.32% (as on March 31, 2006) since inception (June 6, 2002).
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Notes to editors:
For further information, please contact:
Vibha Gupta
IPAN
Telephone: 011-42492122
E-mail: vibha.gupta@ipan.com
Pooja Khan
Aviva India
Telephone: 0124-2804141
E-mail: pooja.khan@avivaindia.com
About Aviva India
Aviva Life Insurance is a joint venture between Dabur and Aviva. Current paid up capital amounts to Rs 559 crores. Dabur are 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 sixth largest insurer worldwide, with 30 million customers and Ł291 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 1,537 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 close to 65% of the total sales of Aviva India. Through its branches and its bancassurance partner locations, Aviva products are available in 378 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 FHC 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 lakhs of lives.