AIA to increase stake in Tata AIA Life to 49%

This will be through the purchase of a 23 per cent stake in the company. The size of the deal was not disclosed

Tata Sons and AIA Group on Monday announced an agreement, under which AIA would increase its shareholding in Tata AIA Life Insurance Company from the current level of 26 per cent to 49 per cent.

The completion of the transaction is subject to securing all necessary regulatory and governmental approvals. The size of the deal, has not been disclosed. Tata AIA Life Insurance is a joint venture company, owned by Tata Sons and AIA Group. It started operations on April 1, 2001.

For the September 2015 quarter, the insurer posted a profit after tax of Rs 34 crore, compared with Rs 218 crore in the year-ago period. For the April-September 2015 period, Tata AIA Life collected total premiums of Rs 972 crore comparedto Rs 918 crore collected in the same period a year ago.