UK-based diversified insurance company Aviva is reportedly considering divesting its 26% shareholding in its Indian life insurance joint venture (JV) Aviva India, which represents its exit from the business in the country market.

The decision to offload the stake by the British insurer has come at a time, when the central government of India has increased its foreign direct investment (FDI) cap to 49%.

The Indian life insurance JV between Aviva and the Dabur Group was created in 2002, in which Aviva holds 26% stake, while remaining 74% shareholding by its partner.

The company is currently looking for suitable buyers and if it fails to find one the stake may be sold to Dabur Group, reported media sources.

In order to trim down its operational cost considerably, the company has also divested its Malaysian insurance joint venture as well as insurance business in Russia.

Previously, Dutch banking and insurance conglomerate ING and New York Life have also divested their insurance JVs in India, after failing to secure profitable ground in highly competitive Indian insurance landscape.