AIA Group Ltd has agreed to raise its stake to 49 percent in its life insurance joint venture with India’s Tata Sons Ltd, the Indian group said on Monday.
AIA, which currently owns 26 percent in Tata AIA Life Insurance, will boost its stake by buying an additional 23 percent in the company, Tata Sons said in a statement, without giving further details.
The companies did not disclose the valuation for the additional stake. The completion of the transaction is subject to securing all necessary regulatory and governmental approvals, the statement said.
For April to September period, Tata AIA Life collected total premiums of Rs 972.2 crore compared to Rs 917.8 crore collected in same period previous fiscal.
Many overseas insurance companies have been increasing stake in Indian ventures after the government allowed foreign investments in Indian ventures to 49% in 2015.
On December 3, Canadian insurance major Sunlife Financial Inc increased its stake to 49 per cent in its Indian insurance venture with the diversified Birla group by purchasing 23 per cent from its Indian partner for Rs 1664 crore.
Not all companies have disclosed deal values. A Mint analysis of deals where the value has been announced suggests that they add up to more than Rs.10,000 crore.
The largest transaction was Japan-based Nippon Life Insurance Co. increasing its stake in Reliance Life Insurance to 49% from 26% for Rs.2,265 crore.