Aviva Life Insurance today announced an increase in its capital base by Rs 199.1 crores, taking the total paid-up capital to Rs 758.2 crores.
- Total paid up capital has increased to Rs 758.2 crores
- Fresh funds to fuel growth plans
- Maintains the 7th position with market share of 5.3% (April – November 2006)
Aviva Life Insurance today announced an increase in its capital base by Rs 199.1 crores, taking the total paid-up capital to Rs 758.2 crores. As per government regulations Aviva holds a 26% stake and Dabur 74%. The fresh infusion will help fuel the growth plans in 2007.
Bert Paterson, managing director, Aviva India, said: “Aviva has a long-term commitment to India and the current capital infusion of Rs 199.1 crores will allow us to expand our operations and launch new products for the customers. In 2007, we plan to increase our branches to 192 locations in India and expand our sales force to 31,000 financial planning advisers covering the length and breadth of the country.”
Mr Paterson 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 more than 30 bancassurance partnerships and are present in 497 locations across India. We have ambitious plans for India and we look forward to an increase in FDI to 49% this 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 include Unitised With-Profits Fund and four unit-linked funds: - Secure Fund, Balanced Fund, Growth Fund and Protector Fund. The flagship fund of the company, Balanced Fund, has performed very well with a compounded annualised growth rate (CAGR) of 27.05% (as on 31 December 2006) since inception (6 June 2002). The Growth Fund has recorded a CAGR of 39.35% (as on 31 December 2006) since inception (27 January 2004).
The company recorded healthy growth in both direct sales force and bancassurance channels. 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:
Aman Abbas
IPAN
Telephone: 011-42492117
E-mail: aman.abbas@ipan.com
Pooja Khan
Aviva India
Telephone: 0124-2804141
E-mail: pooja.khan@avivaindia.com
Notes to editors:
About Aviva India
Aviva Life Insurance is a joint venture between Dabur and Aviva. Current paid up capital amounts to Rs 758.20 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 fifth largest insurer worldwide, with 35 million customers and Ł332 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 1,899 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 497 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 lakhs of lives.