Tata AIG Life Insurance Company has decided to increase its equity capital from the current Rs 231 crore (Rs 2.31 billion) to fund expansion and meet capital adequacy requirements for 2005.
Tata AIG Life managing director Ian J Watts today said the joint venture partners -- the Tata group and American International Group (AIG) -- have in-principle finalised capital infusion plans and a formal announcement will be made in early November.
Tata AIG Life has so far covered eight lakh lives and has set a target of 100 per cent rise in premium income over the next few years, Watts said at the launch of Tata AIG's StarKid child endowment policy. Tata AIG would promote the StarKid policy through a StarKid talent search in schools.
The StarKid policy provides guaranteed addition of 50 per cent of the premium. Tata AIG has 22,000 agent network and 28 branches and 39 training offices across the country.
ICICI Prudential Life Insurance recently increased its equity capital by Rs 150 crore (Rs 1.50 billion) to Rs 850 crore (Rs 8.50 billion), while Allianz Bajaj Life Insurance Company infused Rs 50 crore (Rs 500 million) to raise its equity Rs 250 crore (Rs 2.50 billion).
New life insurance companies need funding from its stakeholders as they expand their operations and need to meet regulatory norms to grow further.
