Tata AIA Declares Record Rs 1,842 Crore Bonus for FY25
- Tata AIA Life Insurance has declared a record Rs 1,842 crore bonus for FY25.
- The bonus covers key participating plans and reflects strong fund performance amid industry-wide record payouts.
- With Rs 25,692 crore in premium income and top rankings in persistency and new business, Tata AIA reaffirms its commitment to long-term value creation.
Tata AIA Life Insurance has revealed its largest bonus distribution ever, amounting to Rs 1,842 crore for the fiscal year 2024–25. This represents a 26 percent rise from previous year's about Rs 1,465 crore bonus. The unprecedented distribution will benefit more than 8.15 lakh policyholders who possess participating life insurance policies with the company. The bonuses have been allocated across several key participating plans from Tata AIA, including the Diamond Savings Plan, Smart Value Income Plan, Value Income Plan, and Shubh Flexi Income Plan.
Participating (Par) plans provide policyholders with a share of the insurer’s profits through annual bonus payments. Meanwhile, these distributions are not guaranteed and rely on the performance of the participating fund. Kshitij Sharma, Executive Vice President and Appointed Actuary at Tata AIA Life Insurance, said “We remain focused on delivering strong returns and helping customers meet long-term financial goals”.
This announcement aligns with a wider trend in the life insurance sector, as numerous private companies have reported record bonus declarations for the fiscal year 2025. Earlier this month, Bajaj Allianz Life Insurance announced a bonus of Rs1,833 crore, which is a 32 percent rise compared to the previous year, benefiting 11.7 lakh policyholders. Their bonus announcement also included a special reversionary bonus of Rs 206 crore for selected equity-linked participating plans. In a similar vein, Kotak Mahindra Life Insurance announced a bonus of Rs 1,178 crore for the fiscal year 2025, marking a 17 percent year-on-year hike.
The company has maintained a consistent streak of bonus payouts for 24 consecutive years, and current year's bonus will affect over 7 lakh policyholders. Tata AIA Life recorded a total premium income of Rs 25,692 crore for the fiscal year 2024. Which is indicating a upto 25 percent of growth from the prior year. It also ranked among the top three private insurers in Individual Weighted New Business Premium, with an income of Rs 7,413 crore. Furthermore, Tata AIA topped the industry in persistency performance across four out of five cohorts. With robust financial performance and increasing customer trust, Tata AIA's record bonus underscores its dedication to creating long-term value for policyholders.
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