Aviva picks up additional 23% stake in India JV

Insurer Aviva said it has purchased additional 23% stake in Aviva Life Insurance Company India from its partner Dabur Invest Corp.

The acquisition follows recent regulatory changes, which allowed Aviva to increase its shareholding to 49%, being the maximum permitted under India's foreign direct investment (FDI) limits, it said.

"Aviva Plc has completed the acquisition of an additional 23% share in Aviva Life Insurance Company India Limited from its joint venture partner Dabur Invest Corp (a part of the Dabur Group/Dabur," Aviva said in a statement.

The transaction is expected to have a neutral impact on Aviva's IFRS net assets, the statement added.

In 2015, Aviva India contributed 36 million pounds (GBP) to Aviva's IFRS net assets and 4 million pounds (GBP) to Aviva's profits, the company said.

Increase in stake by Aviva is in secession to various foreign entities that have already announced or completed the additional pick up in their Indian insurance joint ventures.

Soon after the law took effect, foreign investors started plugging capital into their Indian joint ventures, raising their equity holdings.