A Landmark Deal? Aviva Set for 100% Ownership of Its India Business

UK-based Aviva Plc is poised to become the first overseas life insurer to own 100% of its Indian subsidiary after agreeing to acquire the remaining 26% stake from its joint venture partner, Dabur Invest Corp, according to a report by The Economic Times.

The proposed transaction, which is reportedly in advanced stages, comes just weeks after the Centre notified revised foreign direct investment (FDI) norms permitting complete foreign ownership in the insurance sector.

Financial details of the deal, including any control premium that Aviva may pay for the stake, have not been disclosed.

First Deal Under Liberalised FDI Regime

According to The Economic Times, the acquisition would mark the first transaction under the government's newly liberalised foreign ownership framework for insurance companies.

The policy, announced earlier this year and notified in May, allows overseas insurers to fully own their Indian operations, replacing the earlier requirement for a domestic joint venture partner.

The move is expected to encourage global insurers to increase their long-term capital commitments in India, one of the world's fastest-growing yet underpenetrated insurance markets.

Aviva to End Two-Decade Joint Venture With Dabur

Aviva entered the Indian market in 2000 through a joint venture with Dabur Invest Corp shortly after India opened the insurance sector to private participation.

The British insurer has gradually increased its ownership over the years. In 2022, it raised its stake from 49% to 74% by purchasing an additional 25% from Dabur.

The proposed acquisition of the remaining 26% stake would end Dabur's more than two-decade association with the life insurer.

Why Full Ownership Matters

According to the report, complete ownership would allow Aviva to exercise greater strategic control over its Indian operations while providing stronger incentives to deploy additional growth capital.

India remains one of the world's least-insured markets despite nearly three decades of insurance sector liberalisation. The life insurance industry continues to be dominated by the state-owned Life Insurance Corporation of India (LIC).

Industry experts often view life insurers as important providers of long-term capital that can support infrastructure and other productive sectors requiring stable funding.

Aviva India's Financial Performance

As of March 31, 2026, Aviva India managed assets worth ₹16,316 crore. The company reported gross premium income of ₹1,343 crore for FY26, representing a 2.8% increase from the previous year, while new business premium rose 10% to ₹351 crore.

However, profit after tax declined 21.7% year-on-year to ₹84.15 crore.

The insurer maintained a solvency ratio of 188%, comfortably above the Insurance Regulatory and Development Authority of India's (IRDAI) minimum requirement of 150%. Shareholders' funds stood at ₹878 crore at the end of FY26.

Distribution Remains a Challenge

Despite maintaining healthy capital buffers and regulatory solvency levels, Aviva India has struggled to significantly expand its market share.

As per the report, one of the key constraints has been its relatively limited distribution network of 93 branches in an industry where bancassurance partnerships remain the dominant channel for customer acquisition.

Full ownership could provide Aviva with greater flexibility to invest in distribution, technology and product development as it seeks to strengthen its presence in India's expanding life insurance market.