AVIVA INDIA TO INFUSE ADDITIONAL CAPITAL FOR EXPANSION NEXT YEAR.

CAIRO, Nov 1 Asia Pulse - Private life insurer Aviva India will infuse additional capital next year to fund its expansion plans, which will include setting up of 91 additional branches in the subcontinent nation.

"Shareholders have agreed to pump in additional capital next year," Aviva Life Insurance India MD Bert Paterson said at a workshop on insurance here.

He, however, refused to specify the amount of capital to be infused in the joint venture between Britain's largest life insurer, Aviva Plc and Dabur.

So far, the two partners have invested Rs 5.59 billion (US$124 million) of capital into the joint venture, with Rs 2.39 billion coming in earlier this year.

Pointing out that the insurance industry's wants the Government to raise FDI cap in the sector to 49 per cent from the current 26 per cent, Paterson said it would increase the foreign investment in the industry to Rs 29.37 billion if the overseas partner buys shares of Indian player and to Rs 42.96 billion if it bring additional capital from the current level of Rs 15.23 billion.

Aviva India is planning to add 91 branches taking the total number to 192, and recruit 6,000 direct agents to raise their strength to 12,867.

The expansion plan would be funded all through capital infusion and the company would not raise any debt for the purpose, he said.