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Zero impact of cost-cutting on India business, says Aviva

Aviva sells insurance policies through Dakshin Bihar Gramin Bank and Bank of Maharashtra and through corporate agency tie-ups.

, ET Bureau|
Updated: Jan 03, 2020, 12.43 PM IST
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Aviva is more interested in tie-ups for distribution channels to sell policies.
Mumbai: As British insurer Aviva undergoes a global restructuring and looking to cut 1,800 jobs, it remains committed to the India business despite poor performance since its commencement of operations nearly two decades ago. Trevor Bull, CEO of Aviva India, a joint venture with Dabur, said the company is hopeful of getting a partner, preferably a bank, to drive growth.

“There is zero impact of global cost cutting on India business,” said Bull. “India is set up for growth and investment. India and China are to be growth guns for Aviva.” In 2017, Aviva Group determined that the goodwill of £47 million and £18 million of its investment in Aviva Life Insurance Company India Limited were fully impaired following management’s annual impairment review.

Aviva sells insurance policies through Dakshin Bihar Gramin Bank and Bank of Maharashtra and through corporate agency tie-ups. Aviva is more interested in tie-ups for distribution channels to sell policies.

Aviva is committed to India when several other foreign insurers have exited. Since 2001, after the sector was thrown open to private and foreign companies, three international insurers — UK’s Legal & General, ING and New York Life — have exited their life insurance ventures in India.

Insurance penetration is low in India and life insurance industry is expected to support the growth of insurance sector. After the liberalisation of FDI norms for the sector, many foreign insurance companies have entered into the Indian market to explore the untapped potential.

Aviva Life reported 13% decline in total annualised premium equivalent (APE) in the year up to November. “We are talking to multiple people,” said Bull.

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