The company announces a net profit of 260.31 crore for FY 2011-12
Mumbai: Tata AIG Life Insurance Company, the life insurance joint venture formed by Tata Sons and AIA Group (AIA), today announced that it has changed its name to Tata AIA Life Insurance Company (Tata AIA Life).
The company was set up as a joint venture between the leading Indian conglomerate Tata group and the leading international insurance organisation American International Group (AIG). It was licensed to operate in India on February 12, 2001, and started operations on April 1, 2001. Since its inception, Tata Sons owns 74 percent stake in joint venture, with the remaining 26 percent share held by AIA, a 100 percent owned subsidiary of AIG at that time.
In 2010, AIA went public in Hong Kong and raised $20.51 billion through an initial public offering (IPO). The IPO was the third largest globally at the time of listing, after which AIA emerged as the largest independent publicly listed Pan-Asian life insurance group in the world. AIA has a strong heritage and fundamentals of over 90 years in the Asian insurance market. It has wholly-owned main operating subsidiaries or branches in 14 markets in Asia Pacific.
To create a uniform identity of AIA owned companies post this IPO, the two promoters of this joint venture have chosen to change the company’s name to Tata AIA Life. However, the company makes this transition just in its name; its single-minded focus in protecting the financial well-being of its customers remains unchanged.
Commenting on the occasion, Farrokh K Kavarana, chairman, Tata AIA Life, said, “The Tata group, along with our valued partner AIA, continue to remain committed to the Indian market and our valued customers and partners through our renamed entity Tata AIA Life. Over the past 11 years, we as a company have strived to build a solid foundation of providing financial protection to our customers. We are confident that this strong foundation will enable us to stand unwaveringly in good stead and realise full potential of the vast Indian market.”
Huynh Thanh Phong, executive vice president and regional chief executive, AIA, said, “In order to reflect the true brand identity of AIA and communicate its unique market position, history and its ongoing commitment to customers and partners in Asia Pacific region, the promoters of the joint venture have chosen to change the name of the company from Tata AIG Life Insurance to Tata AIA Life Insurance. The rechristened Tata AIA Life will continue to focus on building a premier agency sales force to meet the savings and protection needs of the customers in India with protection-centric products.”
Suresh Mahalingam, managing director, Tata AIA Life, elaborated, “While we make this transition in our name, nothing else will change. The promoters, the distribution network, the teams, the products, the technology and more importantly, our commitment towards putting the customers at the centre of everything we do, remain unchanged. The foundation of trust that our company has been built upon will continue to be strengthened with the vast expertise that AIA brings with over 90 years of leadership in the life insurance business in the Asia Pacific region.”
Performance of Tata AIA Life for the financial year 2011-12
The total premium income for the financial year ending March 2012 stood at Rs3,630 crore as against Rs3,985 crore posted for the financial year 2010-11. Of this, the new business premium collection stood at Rs940 crore. The renewal premium for the same period was at Rs2,690 crore, as against Rs2,653 crore in the last fiscal. Traditional business accounted for 45 percent of the new business premium as against 29 percent in the last fiscal.
During the financial year, the company further enhanced its operating efficiencies resulting in the reduction of the operating expenses to total premium ratio to 21 percent against 24 percent in the previous financial year.
The total assets under management of the company has increased by 15 percent to Rs14,519 crore from Rs12,622 crore in the last fiscal. As on March 31, 2012, the paid-up capital of the company stood at Rs1,954 crore.
Recent Performance of AIA