AIA group to increase its stake in Indian life insurance venture with Tata Sons to 49 per cent

MUMBAI: American insurance major AIA group will increase its stake in the Indian life insurance venture with Tata Sons –Tata AIA Life Insurance Company--to 49% from 26% by purchasing 23% stake from its partner, the group spokesperson said. The deal signals the significance of the fast growing $50 billion Indian insurance market.

Both companies, which did not reveal the financial details, signed an agreement on Monday. It added that the completion of the transaction will be subjected to regulatory approvals.

Many overseas insurance companies have been increasing stake in Indian ventures after the government allowed foreign investments in Indian ventures to 49% in 2015. On December 3, Canadian insurance major Sunlife Financial Inc increased its stake to 49 per cent in its Indian insurance venture with the diversified Birla group by purchasing 23 per cent from its Indian partner for Rs 1664 crore.

Tata AIA Life offers a wide variety of life insurance solutions that cover protection, savings and wealth creation needs for its customers. The company recorded total premiums of Rs 2,122 crore and net profit of Rs 264 crore, 13 month persistency touched 76%, while claims settlement ratio reached 94%.

AIA Group Limited and its subsidiaries comprise the largest independent publicly listed pan Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 97 per cent subsidiary in Sri Lanka, a 26 per cent joint venture in India and representative offices in Myanmar and Cambodia.