March 09, 2005 15:47 IST
Eyeing India as one of its fastest growing markets, world's fifth largest insurer Aviva Plc wants to infuse more capital in its Indian venture when FDI limit is raised and plans to hire 3,000 more people by 2006 to expand its business process outsourcing operations in the country.
The British insurance major, which manages assets worth £273 billion, may also increase its equity exposure in India and plans to enter pension sector when it opens up for private players.
Outsourcing and India: Complete Coverage
"We believe, with huge economic opportunities and greater insurance penetration, Aviva India will make significant contribution to Aviva's worldwide business. But FDI limit is a constraint," Aviva Life International group executive director Philip Scott told PTI from London on Wednesday.
Optimistic of government's intention for hiking the limit to 49 per cent, he said, "In future, we will of course infuse more capital."
Finance Minister P Chidambaram had proposed a hike in FDI limit from 26 to 49 per cent in 2004 but the government is yet to bring in a bill to amend the IRDA Act for liberalising the foreign investment regime.
Aviva Plc and Dabur India had infused Rs 77 crore (Rs 770 million) in their 26:74 joint venture in January after the company posted almost 200 per cent growth in premium at Rs 158 crore (Rs 1.58 billion) in 2004.
"Indian operation is reporting very strong growth. We are delighted that Aviva India exceeded its target and clocked Rs 152 crore (Rs 1.52 billion) in premium income last year," Scott said.
Aviva Plc logged a 12 per cent growth in business at £20.687 billion in long term savings while operating profits were up by 25 per cent at £2.34 billion in 2004.