Tata AIA Life Insurance Distributes Rs 1,183 Crore Dividend to Policyholders
Tata AIA Life Insurance, a subsidiary of the Tata Group, has announced a significant dividend payout of Rs 1,183 crore to participating policyholders for the previous fiscal year. This dividend represents a remarkable 37% increase compared to the previous year, making it the highest dividend payout to date.
Underlining its commitment to policyholders, Tata AIA Life Insurance has consistently rewarded its customers with bonuses over the years. For FY23, the dividend payout of Rs 1,183 crore surpasses the previous year’s payout of Rs 861 crore. Samit Upadhyay, the President and Chief Financial Officer of Tata AIA Life Insurance, confirmed that a total of 7,49,229 policyholders are eligible to receive this substantial bonus.
Tata AIA Life Insurance offers participating (Par) products, which provide life coverage, income, and lump-sum benefits in the form of bonuses. The surge in dividend payout is attributed to the substantial increase in the company’s net income, soaring from Rs 71 crore in the previous fiscal year to an impressive Rs 506 crore in FY23.
The company’s remarkable growth in income can be attributed to the exceptional performance of its individual new business premium, which witnessed a significant 59% surge, reaching Rs 7,093 crore during the reporting year. The overall premium income for the fiscal year experienced a commendable growth of 42%, amounting to Rs 20,503 crore compared to Rs 14,445 crore in the previous year. This impressive growth in income led to a remarkable 615% surge in net profit, with the company reporting Rs 506 crore in FY23, up from Rs 71 crore in FY22.
Tata AIA Life Insurance has also witnessed a remarkable increase in its market share, which rose from 21% in FY22 to 27% in FY23. The retail sum assured underwritten displayed a growth rate of over 44%, increasing from Rs 3,07,804 crore to Rs 4,43,479 crore year-on-year. Additionally, the total renewal premium experienced a significant 32% increase, reaching Rs 11,964 crore, while the company’s asset under management grew by 21% to reach Rs 71,006 crore.
Demonstrating its commitment to customer satisfaction, Tata AIA Life Insurance achieved an improved individual death claims settlement ratio of 99.01% in FY23, surpassing the previous year’s ratio of 98.53%. As of now, the company boasts total assets under management worth Rs 71,006 crore.
About Tata AIA Life:
Tata AIA Life Insurance brings together Tata’s dominant position in India and AIA’s status as the largest independent pan-Asian life insurance group worldwide, operating in 18 markets across the Asia Pacific region. In addition, Tata AIA Life Insurance is a prominent insurer in the Indian private sector.
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