Tata AIA Investment Plans: Performance delivery, right from the start

Mumbai, 16 March, 2024: Driven by its core value of consumer obsession, Tata AIA Life Insurance Co. Ltd. (Tata AIA), one of India’s leading life insurers, has introduced a host of funds, over time, for the benefit of consumers. One can avail of these funds through the company’s unique Investment-Linked Plans (ILPs), ULIPs, and market-linked health plans, to generate wealth in the long term and ensure protection cover for loved ones. From capitalizing on small caps and emerging opportunities to investing in sustainably conscious companies, the spectrum of these funds is versatile.

 

Tata AIA’s investment philosophy reflects an unwavering commitment to policyholders, focusing on delivering superior, consistent, and risk-adjusted long-term returns, driven by a bottom-up stock-picking strategy. Notably, 95.25% of the rated Asset Under Management (AUM) of Tata AIA is rated 4 star or 5 stars on a 5-year basis as of January 31^st, 2024, by Morningstar Ratings*, the global benchmark. As of February 2024, the total Asset Under Management is INR 96,532 Cr.

In December 2022, Tata AIA launched the Emerging Opportunities Fund, which invests in mid-cap companies and emerging market leaders with the potential to generate significant future growth. The investment objective of the Fund is to generate capital appreciation in the long term by investing in a portfolio of stocks that offer opportunities in the mid-cap space and emerging leaders in the new age sectors offering significant long-term wealth creation along with insurance benefits.  The fund can invest up to 30% of the portfolio in equity and equity-related instruments falling outside the mid-cap range.

In March 2023, Tata AIA launched the Sustainability Equity Fund which aims to generate capital appreciation in the long term by investing in companies that adopt sustainable or Environmental, Social, and Governance (ESG) friendly practices. The fund invests 80-100% in equity and equity-related instruments following ESG criteria, and up to 20% in other equities or debt or money market instruments. 

In the same month, the Company also launched Dynamic Advantage Fund. The fund seeks to generate superior and steady returns by dynamically allocating the investment corpus between Equity and Debt depending upon market conditions. Investors can thus benefit from the growth potential of equity while benefiting from the downside protection that debt funds’ investments offer. As a result, they don’t need to track the markets and rebalance their portfolios manually, a difficult task given the sharp and regular market movements.

In July 2023, the Company launched its first dedicated Small-Cap fund, the Small Cap Discovery Fund. The fund offers policyholders the opportunity to generate capital appreciation in the long term by investing in small-cap stocks. 

The robust economic growth of India, despite global uncertainty, offers stability and attractive investment opportunities. Investment Linked Plans (ILPs) offered by Tata AIA such as Param Rakshak Solutions or Pro-fit allow policyholders the opportunity to invest in a variety of sectors that are likely to benefit from the country’s robust economic growth. In addition, consumers have the security of life insurance cover, which enables them to live their lives Fikar-free and be Har Waqt Ke Liye Taiyaar.

* © 2024 Morningstar. All rights reserved. The Morningstar name is a registered trademark of Morningstar, Inc. in India, and other jurisdictions. The information contained here: (1) includes the proprietary information of Morningstar, Inc. and its affiliates, including, without limitation, Morningstar India Private Limited (“Morningstar”); (2) may not be copied, redistributed or used, by any means, in whole or in part, without the prior, written consent of Morningstar; (3) is not warranted to be complete, accurate or timely; and (4) may be drawn from data published on various dates and procured from various sources and (5) shall not be construed as an offer to buy or sell any security or other investment vehicle. Neither Morningstar, Inc. nor any of its affiliates (including, without limitation, Morningstar) nor any of their officers, directors, employees, associates, or agents shall be responsible or liable for any trading decisions, damages or other losses resulting directly or indirectly from the information.

About Tata AIA Life

Tata AIA Life Insurance Company Limited (Tata AIA) is a joint venture Company formed by Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA). Tata AIA Life combines Tata’s pre-eminent leadership position in India and AIA’s presence as the largest, independent listed pan-Asian life insurance group in the world, spanning 18 markets in the Asia Pacific region.

Tata AIA reported an Individual Weighted New Business Premium (IWNBP) income of INR 7,092 Cr in FY23, an increase of 59% over FY22. The Individual Death Claims Settlement ratio improved from 98.53% in FY22 to 99.01% in FY23. The Persistency ratio, reflecting the percentage of consumers who choose to renew their policies with Tata AIA, has earned the Company the top rank in four out of five cohorts, including 13th-month persistency. Compared to FY22, the 13th Month Persistency ratio (based on Premium) of the Company improved to 88.1%.

About the Tata Group

Founded by Jamsetji Tata in 1868, the Tata Group is a global enterprise, headquartered in India, comprising 30 companies across ten verticals. The group operates in more than 100 countries across six continents, with a mission ‘To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation based on Leadership with Trust’.

Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-six percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation and art and culture. In 2022-23, the revenue of Tata companies, taken together, was $150 billion (INR 12 trillion). These companies collectively employ over 1 million people.

Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors. There are 29 publicly listed Tata enterprises with a combined market capitalisation of $300 billion (INR 24 trillion) as on July 31, 2023.

About AIA

AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets–wholly-owned branches and subsidiaries in Mainland China, Hong Kong SAR (1), Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei and Macau SAR (2), and a 49 per cent joint venture in India. In addition, AIA has a 24.99 per cent shareholding in China Post Life Insurance Co., Ltd.

 The business that is now AIA was first established in Shanghai more than a century ago in 1919. It is a market leader in Asia (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$276 billion as of 30 June 2023.

AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia, AIA serves the holders of more than 41 million individual policies and 17 million participating members of group insurance schemes.

 AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock codes “1299” for HKD counter and “81299” for RMB counter with American Depositary Receipts (Level 1) traded on the over-the-counter market under the ticker symbol “AAGIY”.

Notes:

(1) Hong Kong SAR refers to the Hong Kong Special Administrative Region.

(2) Macau SAR refers to the Macau Special Administrative Region.