AIA In­creases Stake in Tata AIA to 49%

The Economic Times - - Economy: Macro, Micro & More -

Amer­i­can in­surance ma­jor AIA Group on Mon­day com­pleted rais­ing stake in the In­dian life in­surance ven­ture with Tata Sons — Tata AIA Life In­surance Com­pany — to 49% from 26%. The two com­pa­nies did not dis­close fi­nan­cial de­tails of the trans­ac­tion, which was first an­nounced in De­cem­ber last year, re­ports Saloni Shukla. The deal sig­nals the sig­nif­i­cance of the fast grow­ing $50-bil­lion In­dian in­surance mar­ket. Tata AIA Life In­surance started oper­a­tions on April 1, 2001. It of­fers a wide va­ri­ety of life in­surance so­lu­tions that cover pro­tec­tion, sav­ings and wealth cre­ation needs of its cus­tomers. The com­pany recorded a to­tal pre­mium of .₹ 2,122 crore and a net profit of .₹ 264 crore in the quar­ter to Septem­ber 2015. The 13-month per­sis­tency touched 76%, while claims set­tle­ment ra­tio reached 94%. Many over­seas in­surance com­pa­nies have raised stakes in their In­dian ven­tures since March last year when the Par­lia­ment passed the amend­ment to raise the over­seas in­vest­ment limit in in­surance to 49%. In De­cem­ber, Stan­dard Life paid .₹ 1,705 crore for a 9% ad­di­tional stake in HDFC Life, in­creas­ing its stake to 35% from 26%. Re­cently, HDFC Ltd also an­nounced its plan to list its in­surance ven­ture, mak­ing it In­dia’s first in­surance IPO. On De­cem­ber 3 last year, Cana­dian in­surance ma­jor Sunlife Fi­nan­cial Inc in­creased its stake to 49% in its In­dian in­surance ven­ture with the di­ver­si­fied Birla Group by pur­chas­ing 23% from its In­dian part­ner for .₹ 1,664 crore.

MUM­BAI

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