Tata AIA Life Insurance to pay Rs 1,183 cr in dividend to policyholders
Tata AIA Life Insurance has announced a payment of Rs 1,183 crore in dividends to participating policyholders for the last financial year, which is 37 per cent more than the previous financial year and the highest to date.
Tata Group has paid bonuses to its policyholders over the years, and the FY23 bonus is 37 per cent higher than the Rs.861 crore paid out in FY22, the company said, adding that 7,49,229 policyholders are eligible for the bonus. Samit Upadhyay, President and Chief Financial Officer, said.
Participating (nominal) company products offer life and income coverage as well as lump sum benefits in the form of bonuses.
The higher yield is due to the company reporting a multiple increase in net income by Rs. 506 crore in FY23, up from Rs. 71 crore in the previous financial year.
Income growth was driven by premium for individual new business which rose by 59% to Rs.7,093 crore in the reporting year.
Total premium income for the financial year grew by 42 per cent to Rs.20,503 crore from Rs.14,445 crore, which helped it achieve a 615 per cent increase in net profit at Rs.506 crore from Rs.71 crore in FY22.
The guaranteed retail amount subscribed grew from Rs.3,07,804 crore to Rs.4,443,479 crore, a growth of over 44 per cent year-on-year, which helps it increase its market share to 27 per cent from 21 per cent in FY22.
Total renewal premium increased by 32 per cent to Rs.11,964 crore on an annual basis and AUM grew by 21 per cent to Rs.71,006 crore.
The individual death claims settlement ratio improved from 98.53 per cent in FY22 to 99.01 per cent in FY23. The company’s total assets under management were Rs.71,006 crore.