15/May/2008
Life Insurance firm Aviva India is planning to foray into mutual funds by setting up an asset management company. The company is also doubling its sales force for the insurance business and plans to launch new products for the health insurance segment.
India and China have massive geographic potential and will continue to drive our growth in the Asia-Pacific region. In India, Aviva plans to foray in the asset management segment either through a joint venture with a local partner or independently. According to the existing laws, foreign companies will have to invest a minimum of $5 million if it wants to start an asset management company through a JV. If the overseas company pursues the venture independently, it will have to invest a minimum of $50 million. It takes around 6-12 months to get an asset management Licence in India.
Asset management is a key unit of the company. Globally, Aviva Plc has around $326 billion worth of funds as asset under management. An ideal Indian partner should have a large distribution network. However, he declined to comment if the company is in talks for an Indian partner. Aviva also intends to raise its stake in Aviva India to 49% whenever the government increases the FDI limit in the sector to 49% from the present 26%.
The hike in FDI in the sector has been opposed by the Left parties for the past 4 years. Aviva India is a 26:74 JV with the Dabur Group holding the majority stake.
One of the focus areas of the company is to drive its growth in India by augmenting its distribution channel.
Source: Insuremagic
Thursday, May 15, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment