AIA Raises Stake @ Tata AIA

AIA Group has increased stake in Tata AIA Life Insurance from 26 per cent from 49 per cent. The insurance company is a joint venture between Tata Sons and  AIA Group. The value of the transaction is Rs 2,055 crore for the additional 23 per cent stake, according to details mentioned in a press release by Foreign Investment Promotion Board (FIPB) for its meeting held on March 7, 2016. This transaction values the insurance company at Rs 8,934.78 crore.

In December 2015, it was announced that AIA Group will hike its stake in Tata AIA Life to 49 per cent. Following receipt of all necessary governmental and regulatory approvals, they have today successfully completed the transaction.

According to provisional data from the Life Insurance Council, Tata AIA Life collected new premiums of Rs 741 crore for financial year 2015-16, showing a growth of 137 per cent. This was the highest growth posted by any insurer in the industry. 

The insurer is among the top 15 players with respect to new premium collection in the life insurance industryThe Insurance Laws (Amendment) Act that was passed in 2015 has now allowed foreign direct investment (FDI) of up to 49 per cent in insurance companies in India. Earlier, only 26 per cent FDI was allowed in the insurance sector..