Aviva makes Rs 29 crore profit, its first in 9 yrs

KOLKATA: Aviva Life Insurance registered a Rs29-crore net profit for the year 2010-11, its maiden profit since its inception in May 2002. The life insurer had reported a loss of Rs345 crore in the previous financial year. Company’s total premium collected was the same as last year’s at Rs2,345 crore while total assets under management was Rs7,654 crore.

Aviva India managing director TR Ramachandran said: “Our business focus has been on sustainable and profitable growth, driven by a quality-led business model focused on bancassurance. The transition to profitability is a result of proactive steps taken to re-organise the product portfolio and continuous management focus on achieving higher productivity, improving persistency and strategic cost management.”

The company focused on protection and child segment and both the segments contributed nearly 10% each to the total business. Aviva India introduced a complete suite of protection products, including its online term plan and came up with seven new traditional products and four unit-linked products during the fiscal.

A strong management focus towards resource optimisation and cost efficiencies led to a reduction of 20% in total operating expenses. The company’s operating expenses to gross written premium ratio improved from 30% during 2009-10 to 24% in 2010-11.

Aviva Life Insurance is a joint venture between Dabur and Aviva, with the domestic entity having a 74% stake and the UKbased Aviva holding a 26% stake. The company has a total paid-up capital of Rs2,004 crore as of March 2011.

With its focus on rural and micro insurance, Mr Ramachandran said, Aviva India has achieved its rural and social sector obligations prescribed by the insurance regulator.