The promoters of Tata AIG Life Insurance are expected to impart Rs 600 crore capital in venture during current financial year. Both the partners are committed to life insurance business which would bring in down the capital requirements.
This capital infusion would be in proportion to the shareholding which the Tata Group holds making AIG achieve a 26% stake overall. This capital is required to maintain solvency margin which would meet up the new business growth. The company has increased it branches to 400 in a couple of years.
The management expense ratio for the company has gone up by 30 percent during the last financial year which would take certain initiatives for the headcounts to make you productive. The focus would be to leverage on existing workforce which would make a substantial number.
Such private life insurance companies have reaches their eight year of operation with capital requirements being very much high. The current changes would be a cap on the charges which would increase the capital requirements.
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