Aviva not interested in AMP Sanmar

Private insurance player, Aviva is unlikely to buy out AMP Sanmar in India.

AMP Sanmar has announced its plans to exit the insurance business in India and is looking at options ranging from outright sale to an existing partner to even bringing in a new partner.

Grant Barrans, director, Aviva Life International, had earlier said that they are open to acqusitions in India and that they will be looking at it.

Speaking to Business Standard, Stuart Purdy, managing director, Aviva Life Insurance, India, however, said that like all other private insurance players, Aviva is also watching the AMP Sanmar issue closely. But on whether Aviva will buy out AMP Sanmar, Purdy said that it is "unlikely to happen".

AMP Sanmar is a 26:74 joint venture between Australia-based AMP and Chennai-based Sanmar Group.

Meanwhile Aviva is also trying to enter the domain of top five rankings in the Indian life insurance sector from its current ninth position. In this regard, it has also entered the group insurance business and has bagged its first client - Oil India.

"We have identified six major cities like Mumbai, Delhi, Bangalore and Hyderabad for launching group insurance business," Shoumitro Roye, director - direct sales force - Aviva Life Insurance, India said.

"We are also likely to bag a major account in Hyderabad that may turn out to be three times bigger than the existing one," he added.

Aviva will also expanding its number of branches to 41 from around 30 by the end of this financial year. It will also be increasing the strength of its direct sales force with plans of taking the number to 40,000 by 2010.

At present, the direct sales force contribute to 39 per cent of Aviva's business. The insurance player plans to up this percentage to 50 by the end of 2005-06.