Read the latest edition of AIR and MEIR as an Interactive e-book

Oct 2021

India: Local partner of Aviva Life to give up majority stake

Source: Asia Insurance Review | Sep 2021

The Burman family will reduce its stake in the life venture, Aviva Life Insurance, from 51% at present to 26%. Aviva’s holding will rise to 74%, giving the foreign partner equity control of the life insurer, sources told Livemint.
The deal could raise capital of INR15bn ($202m) for the Burman family whose core business is in consumer goods.
Confirming the proposed transaction, Aviva Life Insurance chairman Mohit Burman and Dabur India vice-chairman Mohit Burman said, “Aviva has decided to increase stake from 49% to 74% when the regulations permit, and the Burman family will continue to be the JV partner.”
One of sources said, “Going by current actuarial valuations, the additional 25% stake to be acquired by Aviva could be worth at least INR15bn. The business is growing, and Aviva Life’s potential is huge, given the niche markets and customer segments in which Aviva Life has a better grip than other life insurers in India.”
“If all goes well, the deal is likely to be announced within two months,” this person said. A 
| Print | Share

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.


Recent Comments

There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.