Aviva may pull out of its Indian life insurance joint venture, valued at over $500 million, as the British insurer retreats from less profitable markets where it has struggled to expand.
Aviva, which aims to cut cost by 400 million pounds or $611 million by year end, is in the process of hiring corporate advisors to find buyers for its 26% stake in Aviva Life, its joint venture with Dabur group.
Aviva is considering various options, including selling stake to Dabur group if it fails to find a foreign buyer. Aviva would be the third foreign insurer to quit India since 2012, stymied by regulations that restrict foreign ownership and fierce political opposition to changing those limits.
HSBC had launched a process to sell 26% stake in its Indian insurance joint venture with two state-owned banks. 1.Dutch banking and insurance group ING, 2.New York Life have exited their India insurance joint ventures.and 3.now aviva
Aviva had identified India and China as ‘high priority’ and ‘must win’ markets, but the move to sell out of India signals a change in that strategy.
vinay mohanty
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