UK insurer Aviva Plc has completed the acquisition of the remaining 26% stake in Aviva Life Insurance Co India from its joint venture partner, Dabur Invest Corp, marking the first foreign insurer to fully own its India life insurance venture under the new liberalised FDI rules. According to ET Now, the acquisition follows India's landmark reform that raised the foreign direct investment cap in its insurance sector to 100% from 74% of paid-up equity capital. The British insurer has been present in India since 2001 through its joint venture with Dabur Invest Corp, and this completion ends the more than two-decade association between the two partners. As reported by ET Now, the company did not disclose the price of the acquisition and said its financial impacts are not material to it.
Total ownership provides the British parent with greater strategic flexibility and faster decision-making capabilities for business expansion in the competitive Indian insurance market. As reported by ET Now, the acquisition follows Aviva's previous strategic moves - raising its shareholding to 49% in 2016 and then to 74% in 2022 - both times following similar regulatory changes. The move gives the British parent sufficient incentive to allocate growth capital to a sector that continues to be dominated by state-run Life Insurance Corp nearly three decades after deregulation. According to ET Now, the insurer was previously not really growing and was largely managing its solvency position.
According to The Economic Times, as of March 31, 2026, Aviva managed assets of about ₹16,316 crore and reported premium of ₹1,343 crore for FY26, up 2.8% from the previous year. Total new business premium grew 10% to ₹351 crore. However, profit after tax declined 21.7% year-on-year to ₹84.15 crore. The insurer's solvency ratio stood at 188%, comfortably above the regulatory requirement of 150%, while shareholders' funds were ₹878 crore.
As reported by ET Now, Aviva has been present in India since 2001 through its joint venture with Dabur Invest Corp. Over the past few years, the UK insurer has steadily increased its commitment to the business, raising its stake from 49% to 74% in 2022 by acquiring an additional 25% from its Indian partner. Despite maintaining adequate capital, the insurer has struggled to scale its business over the years, mainly due to limited distribution of 93 branches in an industry that is dominated by bancassurance tie-ups. The acquisition of the residual stake will end Dabur's more than two-decade association with the insurer.
