AIA Increases Stake in Tata AIA to 49%
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.