The Hindu Business Line : Tata AIG Life to increase equity exposure

Tata AIG Life Insurance Company Ltd will look to ramp up its equity exposure this year as it has an opportunity to buy stocks in a falling market scenario, Mr Trevor Bull, Managing Director, Tata AIG Life, said here on Friday.

Speaking to Business Line on the sidelines of a conference to announce a marketing tie-up with United Bank of India, Mr Bull said, “We have been increasing exposure in equity over the last six months and will continue to do so in the second half of the year as it is a good buying opportunity for us.”

This year, the life insurer’s equity exposure has increased between 3 and 6 per cent, he said. Tata AIG invests 42 per cent in equity out of the total asset under management of Rs 4,200 crore.

Tata AIG’s first premium income grew by 77 per cent and total income by 50 per cent in April-July over the same period last year, Mr Bull said. It had posted a total income of Rs 2,000 crore last fiscal, of which new premium income was Rs 800 crore, he added.

Retirement products

Tata AIG Life announced the launch of United Retirement Solutions, a customised package of three retirement products for the customers of United Bank of India.

The package contains Invest Assure Future, a unit-linked investment plan targeted at affluent customers looking to save for retirement; Nirvana Plus, a traditional policy for average Indian households, and Easy Retire, a unit-linked pure pension plan.

With regard to the growth of overall bancassurance business, Mr Bull said the share of bancassurance and other alternative channels to Tata AIG’s business has dropped to 21 per cent this year from last year’s 30 per cent. This is mainly because of the termination of the tie up with HSBC and the dampening mortgage and personal loan markets, he added.

The bancassurance business is, however, expected to pick up this year with a number of marketing tie ups lined up, he said.

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