Date:27/01/2006 URL: http://www.thehindubusinessline.com/2006/01/27/stories/2006012701930600.htm

Back Aviva Life hikes capital by Rs 139 cr; APE at Rs 314 cr

Our Bureau

Hyderabad , Jan 26

AVIVA Life Insurance has announced an increase in its capital base by Rs 139 crore, taking the total paid-up capital to Rs 459 crore.

As per Government regulations, Aviva currently holds a 26-per cent stake and Dabur 74 per cent. Aviva Life expects the fresh infusion to help fuel the growth plans in 2006.

In a press release here, Aviva Life said it has recorded a growth of 106 per cent compared to the last year with new business annualised premium equivalent (APE) of Rs 314 crore for the calendar year 2005.

APE is calculated with 100 per cent weightage on regular premium and only 10 per cent weightage on single premium.

Aviva Life said it has fared well with an increase in its market share to 5.5 per cent during April-November 2005, from the same period last year. Aviva Life holds seventh position in the Indian life insurance market.

According to the Managing Director of Aviva India, Mr Stuart Purdy, "Insurance is a capital-intensive business and the current capital infusion of Rs 139 crore will allow us to expand our operations, launch new products and reach out to the target audience."

In the last one year, Aviva Life has strengthened its bancassurance and DSF (direct sales force) channels allowing it access a wider customer base.