Aviva to raise stake in India joint venture to maximum 49 percent

LONDON (Reuters) - British insurer Aviva said on Thursday it was planning to raise its stake in its Indian joint venture with Dabur Invest Corp to 49 percent, following Indian rule changes on foreign direct investment.

Aviva will raise its stake to the maximum level allowed for foreign companies from 26 percent, the previous maximum stake.

"The increase of foreign direct investment limits...has made the Indian insurance market much more attractive," said

David McMillan, chief executive of Aviva Europe and India, in a statement.

McMillan added that Aviva expected to complete the deal in the next six months.

Aviva is one of the first foreign life insurers to announce an increase in its stake, after the rule changes were passed in March 2015.

 

(Reporting by Carolyn Cohn; Editing by Matt Scuffham)