The agreement carries a condition that the transaction would be completed subjected to regulatory approvals.
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Tata AIA Life Insurance was licensed to operate in India on 12 February 2001 and started operations on 1 April 2001.
A senior industry official said, “If we look at the last few days, several of the foreign partners have hiked their stake in Indian insurance business as they have all the clarity of “management control”.
AIA and Tata Sons did not disclose the financial details of the deal.
For quarter ended September 30, 2015, the insurer posted profit after tax of Rs 34.1 crore compared to Rs 217.9 crore posted in same quarter previous fiscal. 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. While 13th month persistency touched 76 per cent, claims settlement ratio reached 94 per cent.
AIA Group and its subsidiaries comprise the largest independent publicly listed pan-Asian life insurance group. In November, Nippon Life bought a 23% stake in Reliance Life Insurance, pushing its holding in the company up to 49%.
However, the two partners did not disclose the value at which the additional stakes are being bought.
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India opened insurance for private companies in 2000 while also allowing foreign players to take a 26 per cent stake.
