Vivek Khanna, marketing director, Aviva Life Insurance, in Calcutta on Tuesday. Picture by Kishor Roy Chowdhury

Calcutta, May 15: Aviva Life Insurance is expecting to break even by 2008.

The company reported a 111 per cent growth in its business in 2006 compared with a 105 per cent growth by private sector life insurers, according to marketing director Vivek Khanna.

The company has a 5.1 per cent share of the private sector life insurance market.

Khanna said the company earned a premium income of Rs 2,400 crore in 2006.

The majority of the income is in the form of first premium income.

The promoters, Dabur and UK’s Aviva, have brought Rs 199 crore as equity capital this year, taking the paid-up capital of the company to Rs 957 crore.

Khanna said 98 per cent of Aviva’s business was generated by unit-linked products (Ulips). The bancassurance channel contributed 65 per cent to the business and agents 35 per cent.

Aviva has 156 branches and plans to have 192 branches by the end of the year.

The company today launched a savings-cum-protection plan offering a guaranteed return of 7 per cent per annum on the sum assured.

Called Dhan Vriddhi, the non-Ulip plan has a money-back facility and extended life coverage. “Whatever be the policy term, a policyholder will not pay a premium in the last five years,” Khanna said.

Aviva Life has some non-Ulip products in its portfolio. These are term assurance products. Dhan Vriddhi is its first endowment-cum-money back plan in the non-Ulip segment.