Acquisition of Additional 23% Share in Aviva India

RNS Number : 8979W

Aviva PLC

03 May 2016

 

3 May 2016

Aviva completes the acquisition

of an additional 23% share in Aviva India

Aviva plc ("Aviva") has completed¹ the acquisition of an additional 23% share in Aviva Life Insurance Company India Limited ("Aviva India") from its joint venture partner Dabur Invest Corp (a part of the Dabur Group) ("Dabur").

The acquisition follows recent regulatory changes which allowed Aviva to increase its shareholding to 49%, being the maximum permitted under India's foreign direct investment limits ("FDI"). The transaction is expected to have a neutral impact on Aviva's IFRS Net Assets. In 2015, Aviva India contributed £36m to Aviva's IFRS Net Assets² and £4m to Aviva's Profits³.

Aviva India is a life insurance joint venture between Dabur and Aviva which was formed in 2001. As is customary in such joint venture arrangements, the original agreement between the parties includes options exercisable in the event of future changes in FDI for which Aviva pays an annual option price to Dabur⁴. These options allow Aviva to purchase, or Dabur to sell shares at prevailing fair market value⁵ such that Aviva would hold up to the maximum number of shares permitted under FDI.

Enquiries:

Media

Andrew Reid                                                         [phone]

Analysts

Chris Esson                                                           [phone]

David Elliot                                                           [phone]             

-ends-

1.         Completion occurred on 29 April 2016

2.         Represents Investment in Associate at 31 December 2015 for Aviva's 26% share of Aviva India

3.         Represents Aviva's share of profit before tax in Aviva India for the year ended 31 December 2015

4.         Option price payable by Aviva to Dabur calculated by reference to Dabur's share capital invested in Aviva India

5.         Prevailing fair market value to be agreed between Aviva and Dabur or, failing such agreement, determined by an independent expert. This payment is subject to a minimum amount, being the relevant proportion of Dabur's share capital invested in Aviva India and would be payable in cash

Notes to editors

·     Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers, across 16 markets worldwide

·     In the UK we are the leading insurer serving one in every four households and have strong businesses in selected markets in Europe, Asia and Canada. Our shares are listed on the London Stock Exchange and we are a member of the FTSE100 index.  

·     Aviva's asset management business, Aviva Investors, provides asset management services to both Aviva and external clients, and currently manages over £289 billion in assets.

·     Aviva helps people save for the future and manage the risks of everyday life; we paid out £30.7 billion in benefits and claims in 2015.

·     By serving our customers well, we are building a business which is strong and sustainable, which our people are proud to work for, and which makes a positive contribution to society.

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