Aviva Life Insurance has hiked capital by another Rs 88 crore (Rs 880 million) to Rs 243 crore (Rs 2.43 billion) to sustain growth in business, which doubled to over Rs 70 crore (Rs 700 million) in 2003.
"The promoters -- Dabur India and Aviva Plc of UK -- have infused another Rs 88 crore (Rs 880 million) last week. This increases our capital to Rs 243 crore," Aviva CEO Stuart Purdy said after sealing a marketing tie up with Bajaj Capital in New Delhi on Tuesday.
He said the new generation life insurer hopes to grow by over 100 per cent to clock a premium income of Rs 150 crore (Rs 1.5 billion) this year as against Rs 70 crore in 2003.
The 74:26 joint venture between Dabur India and Aviva Plc plans to tie up with more private banks and insurance brokers to increase its reach to 150 locations by 2005, he said. Aviva is now in 91 locations in the country.
Aviva has bancassurance tie ups with ABN AMRO Bank, American Express Bank, Canara Bank and Lakshmi Vilas Bank.
Purdy said the company plans to increase its reach through a number of innovative marketing initiatives like direct-to-customer and roping in super markets.
Aviva Plc also plans to foray into the pension sector when it opens up for private players, he said.
The government has decided to allow more than nine players to enter the pension sector and the guidelines are being drawn up by the interim Pension Fund Regulatory and Development Authority.
"We are waiting for more clarity about the ownership pattern and other aspects," Purdy said, adding life insurers will dominate the pension sector when it opens up.