Tata AIA Life Insurance crosses Rs.1 Lakh Crore in Assets Under Management (AUM)
AUM doubled in less than 3 years on the back of continued consumer trust
Bengaluru, 23 April 2024: Tata AIA Life Insurance Co. Ltd. (Tata AIA), one of India’s leading life insurers has crossed Rs. 1 Lakh Cr in Assets under Management (AUM). In less than three years, the Company has doubled its AUM from Rs. 50,000 Crore (Aug’21) to Rs. 1,00,000 Cr. This increase has been fuelled by strong growth in Individual New Business premium (IWNBP) income and superior investment performance.
Commenting on this occasion, Venky Iyer, Chief Executive Officer & Managing Director, Tata AIA, said, “The doubling of our AUM in less than 3 years, is a testimony to the trust reposed by our consumers in our innovative solutions and service experience, the support of our agents & partners and the benchmark beating performance of our investment team. We will continue to work towards financially securing our consumers and fulfilling their aspirations, enabling them to be Har Waqt Ke Liye Taiyaar”.
Tata AIA achieved an industry-leading Performance in Persistency (based on premium) by ranking #1 in 4 cohorts (13th, 25th, 37th, 61st month) in Q3, FY24. The company’s leadership in Persistency validates the continued trust that Tata AIA consumers repose in the brand, having chosen to renew their policy year after year. Regular payment of premium is very important as it ensures that consumers stay covered and enjoy benefits over the policy term.
The Claims Settlement ratio also improved to 99.19% as of Dec-23 on a trailing 12-month basis growing by 0.71%.
Tata AIA’s investment philosophy reflects an unwavering commitment to policyholders, focusing on delivering superior, consistent, and risk-adjusted long-term returns, driven by a bottom-up stock-picking strategy. Notably, 91% of the rated Asset Under Management (AUM) of Tata AIA is rated 4 star or 5 stars on a 5-year basis as of March 31, 2024, by Morningstar Ratings*. Notably, the funds have outperformed their benchmark over different time periods, as is evident from the table below:
| Tata AIA Funds | AUM (Rs. Cr) | 1 Yr Return % | 1 Yr Benchmark Return % | 5 Yr Return % | 5 Yr Benchmark Return % |
| Multi Cap Fund | 5,299.59 | 49.60% | 36.69% | 26.67% | 15.53% |
| Top 200 Fund | 1,663.34 | 48.59% | 36.69% | 25.63% | 15.53% |
| India Consumption Fund | 1,508.42 | 52.56% | 36.69% | 25.18% | 15.53% |
| Emerging Opportunities Fund | 997.77 | 66.08% | 57.43% | N.A. | N.A. |
Note: Data as on March 31, 2024
* © 2024 Morningstar. All rights reserved. The Morningstar name is a registered trademark of Morningstar, Inc. in India, and other jurisdictions. The information contained here: (1) includes the proprietary information of Morningstar, Inc. and its affiliates, including, without limitation, Morningstar India Private Limited (“Morningstar”); (2) may not be copied, redistributed or used, by any means, in whole or in part, without the prior, written consent of Morningstar; (3) is not warranted to be complete, accurate or timely; and (4) may be drawn from data published on various dates and procured from various sources and (5) shall not be construed as an offer to buy or sell any security or other investment vehicle. Neither Morningstar, Inc. nor any of its affiliates (including, without limitation, Morningstar) nor any of their officers, directors, employees, associates, or agents shall be responsible or liable for any trading decisions, damages or other losses resulting directly or indirectly from the information.
About Tata AIA Life
Tata AIA Life Insurance Company Limited (Tata AIA) is a joint venture Company formed by Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA). Tata AIA Life combines Tata’s pre-eminent leadership position in India and AIA’s presence as the largest, independent listed pan-Asian life insurance group in the world, spanning 18 markets in the Asia Pacific region.
Tata AIA reported an Individual Weighted New Business Premium (IWNBP) income of INR 7,092 Cr in FY23, an increase of 59% over FY22. The Individual Death Claims Settlement ratio improved from 98.53% in FY22 to 99.01% in FY23. The Persistency ratio, reflecting the percentage of consumers who choose to renew their policies with Tata AIA, has earned the Company the top rank in four out of five cohorts, including 13th-month persistency. Compared to FY22, the 13th Month Persistency ratio (based on Premium) of the Company improved to 88.1%.
About the Tata Group
Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India, comprising 30 companies across ten verticals. The group operates in more than 100 countries across six continents, with a mission ‘To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation based on Leadership with Trust’.
Tata Sons is the principal investment holding company and promoter of Tata Companies. Sixty-six percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation and art and culture.
In 2022-23, the revenue of Tata Companies, taken together, was $150 billion (INR 12 trillion). These companies collectively employ over 1 million people. Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors. There are 29 publicly listed Tata enterprises with a combined market capitalization of $350 billion as of February 2024.
About AIA
AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets – wholly-owned branches and subsidiaries in Mainland China, Hong Kong SAR (1), Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei and Macau SAR(2), and a 49 per cent joint venture in India. In addition, AIA has a 24.99 per cent shareholding in China Post Life Insurance Co., Ltd.
The business that is now AIA was first established in Shanghai more than a century ago in 1919. It is a market leader in Asia (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$286 billion as of 31 December 2023.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia, AIA serves the holders of more than 42 million individual policies and over 18 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock codes “1299” for HKD counter and “81299” for RMB counter with American Depositary Receipts (Level 1) traded on the over-the-counter market under the ticker symbol “AAGIY”.
Notes:
(1) Hong Kong SAR refers to the Hong Kong Special Administrative Region.
(2) Macau SAR refers to the Macau Special Administrative Region.
