Since India is one of the priority market for the company, it is constantly assessing the fund requirement and will be infusing additional capital within the current foreign direct investment norms, if need be.
Speaking at an insurance seminar in Mumbai, Bret Paterson, managing director, Aviva India said, additional capital will be infused if opportunities arise and will make an announcement at the right time. It infused Rs 199 crore (Rs 1.99 billion) in January 2007 in its life insurance venture with Dabur India and has lined up funds for 2008 and 2009.
However, with growing opportunities, the fund requirement is under review and additional funds could be brought in at the right time, he said.
He ruled out any review of the existing joint venture with Dabur or need for any more foreign partners even as he stated that the restrictions in the foreign direct investment may bring in consolidation given the increased requirement of funds and restrictions on the foreign ownership.
Speaking at the seminar, Jean Francois Izac, director mergers and acquisitions, Aviva Plc said that the valuation of an insurance company gets increased depending on the growth potential of the business and the country's economy.
This is significant on the backdrop of the higher valuation of the insurance venture of the ICICI Prudential recently.
He said, "If the company or business or country is growing manifold, multiple one pays on the growth of the new business is very high."
The current paid up capital of the company is Rs 758 crore (Rs 7.58 billion) and the company has set up its own house fund management.
