Tata AIG eyes metros in corporate pension thrust

Tata AIG plans to expand its corporate pension business to Delhi, Kolkata, Hyderabad, Bangalore and Chennai.

The marketing set-up in some cities is expected to be in place in next couple of months. Since inception Tata AIG's corporate pension business has grown to Rs 100 crore in asset size in four years.

Agreeing that Indian market has been tough to crack, Peter Crewe, vice president and regional pensions director based out of Hong Kong said, "In Hong Kong we manage assets worth about $2 billion in pensions. We have been leveraging group companies of our global clients and Tata Group companies to make inroad into the business here and going forward we are going to target companies based in other major metros."

In a space dominated by Life Insurance Corporation, Birla Sunlife is the leader in corporate pension business in the private sector.

Traditionally, companies have been self managing their superannuation scheme but now private players are targeting companies to outsource the management of scheme with options of flexible investment mix and greater expertise.

Self-managed funds cannot invest in equities, while private players are allowed to invest up to 60 per cent in equities, pointed out Vrinda Kini, vice-president - pensions, Tata AIG Life Insurance.

Further she added that self-managed funds have to invest 30 per cent in public sector entities and public financial institutions and compulsorily put 15 per cent in state government securities and gilt mutual funds.

In a presentation Tata AIG pointed out that it is the only insurance company to offer combination of unit-linked and non-linked option.