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Aviva Life Insurance Looks Out For a Bank Partner

by Lyju Kuruvilla on  November 3, 2011 at 12:05 PM Health Insurance News   - G J E 4
Aviva Life Insurance is looking for a bank partner for expanding its insurance network and the deal is likely to be finalized by December-end. "We are in talks with different banks for a tie-up. The negotiations are at initial stages. We expect to close the deal in 2-3 months," Dabur Group Director Mohit Burman said.
 Aviva Life Insurance Looks Out For a Bank Partner
Aviva Life Insurance Looks Out For a Bank Partner
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Burman, who is a member of the promoter family of the Dabur Group, holds a majority stake in Aviva Life Insurance, while the UK-based Aviva Group has 26 per cent stake in it. He added that the company is scouting for a bank partner for tie-up. They are yet to decide on whether there will be a stake sale or fresh equity.

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He said Aviva Life has participated in the RFP (Request for Proposal) floated by PSU lender Syndicate Bank and is also in talks with other lenders. Aviva Life Insurance is a joint venture between the Dabur Group and UK-based Aviva Group with a paid up capital of over Rs. 2,000 crores.

At present, Aviva Life Insurance sells products through partner banks - Punjab & Sind Bank, IndusInd Bank and RBS. A bank partner would help Aviva Life, which started operations in May 2002, to expand its reach using the bank's branch network. For the full fiscal 2010-11, Aviva Life reported a net profit of Rs 29 crore and total premium collection of Rs 2,345 crore.

Now-a-days, insurance companies are showing interest to sell stakes to banks to have access to their wide branch network.

Source: Medindia
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