Aviva agrees to purchase remaining 26% stake in India joint venture
Aviva has signed an agreement to purchase the remaining 26% share of Aviva Life Insurance Company India Limited (“Aviva India”) from Dabur Invest Corp (“DIC”), its local joint venture partner. This will take Aviva’s ownership of Aviva India to 100% and will give Aviva full control over the strategic direction of the business.
Aviva India is currently a life insurance joint venture between DIC and Aviva which was formed in 2001. The acquisition follows recent regulatory foreign direct investment (“FDI”) changes in India, which now allow foreign insurers to increase their shareholdings in local insurance companies to 100%. There were similar increases in Aviva’s shareholding in 2016 and 2022 following changes to the FDI regulations.
Financial impacts of the transaction are not material to Aviva.
On completion of the transaction, the current joint venture agreement will be terminated. Completion will happen in due course.