Tata AIA announces highest ever bonus payout of Rs 1,465 crore

Tata AIA Life Insurance Co. Ltd. (Tata AIA) has declared a bonus of Rs 1,465 crores for Participating (PAR) policyholders for the financial year 2024. The bonus payout announced is the highest ever paid by the Company, showcasing an increase of 24 percent over the Rs 1,183 crore bonus announced in FY23.

According to Tata AIA, its strong investment management capabilities and robust risk management practices are the reason that the company enjoys the trust of its consumers, as they continue to renew their policies.

During FY24, Tata AIA achieved industry-leading Persistency performance (based on premium), ranking number 1 in 4 cohorts - 13th Month (89.40 percent), 25th Month (80.70 percent), 37th Month (75.00 percent) and 49th Month (73.10 percent). This Persistency performance ratio indicates the percentage of policyholders who renew their life insurance policy every year, demonstrating their loyalty and trust in the brand.

Kshitij Sharma, Executive Vice President and Appointed Actuary, Tata AIA, said, “We are delighted to deliver yet another year of excellent performance of bonus payout in our participation policies. Tata AIA's record bonus announcement underscores our commitment to rewarding our policyholders for their trust. Providing superior returns to our policyholders is our continuous endeavor, enabling our consumers to live a fikar-free life and fulfill their aspirations towards their loved ones.”

The Company has built a well-defined research framework with a long-term view to ensure continuous value for its consumers. This has enabled it to double its Assets Under Management (AUM) Rs 1 Lakh crores in less than 3 years.  Notably, 91 percent of the rated AUM of Tata AIA is rated 4 star or 5 stars on a 5-year basis as of March 31, 2024, by Morningstar Ratings, highlighting the quality of the investment portfolio.