AIA will increase shareholding in Tata AIA Life Insurance Company, a joint venture company formed by Tata Sons and AIA, from the current level of 26 per cent to 49 per cent through the purchase of a 23 per cent stake in the company, a joint statement said.
However, both the companies did not disclose the financial details.
"The completion of the transaction is subject to securing all necessary regulatory and governmental approvals," the statement said.
Tata AIA Life Insurance, which started operation in 2001 offers a wide variety of life insurance solutions that cover protection, savings and wealth creation needs.
Following, Parliament passing the law for hike in foreign direct investment in private insurance companies to 49 per cent earlier this year, many overseas partners have proposed to raise stakes in their Indian joint ventures. Prominent names include Nippon in Reliance Life Insurance, AXA in Bharti AXA Life Insurance, Bupa in Max BUPA health insurance and Sunlife Financial Inc in Birla Sunlife.