Aviva Life's capital up at Rs 243 crore

Aviva Life Insurance has hiked its capital by another Rs 88 crore to Rs 243 crore for sustained growth in business, which doubled to over Rs 70 crore in 2003.

"The promoters - Dabur India and Aviva Plc of UK - have infused another Rs 88 crore last week. This increases our capital to Rs 243 crore," Stuart Purdy, chief executive, Aviva Life, said after a marketing tie-up with Bajaj Capital.

Purdy said the life insurer was targeting to grow by over 100 per cent to clock a premium income of Rs 150 crore this year as against Rs 70 crore in 2003.

The company plans to tie up with more private banks and insurance brokers to increase its reach to 150 locations by 2005, he said.

Aviva is now present at 91 locations in the country. Aviva has bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank and Lakshmi Vilas Bank.

Purdy said the company plans to increase its reach through a number of innovative marketing initiatives such as direct-to-customer and roping in supermarkets.

Aviva Plc, which holds 26 per cent stake in the Indian venture with the Burmans of Dabur, also plans to foray into the pension sector when it opens up for private players, he said.

Government has decided to allow more than nine players to enter the pension sector and the guidelines are being drawn up by the interim Pension Fund Regulatory and Development Authority.

"We are waiting for more clarity about the ownership pattern and other aspects," Purdy said, adding life insurers will dominate the pension sector when it opens up.