Another half a dozen foreign promoters have increased stakes in Indian insurance joint ventures after the amendment, seen as a major reform and aimed at fuelling growth in the insurance business. "Capital has not come in this year but later on if there is need for capital, contribution will come in from both the partners." "Indian promoters' ability to put in capital is limited," said SB Mathur, former chairman of Life Insurance Corporation of India "With the exchange of shares and higher stake of foreign promoters, it will be easier to fund growth in future. AIA has invested Rs2,055 crore in Tata AIA Life Insurance , Nippon Life has invested Rs 2,265 crore in Reliance Life and Sun LifeAround has invested Rs 1,664 crore in Birla SunLife Insurance Company"As of now, FDI has only helped in exchange of shares but it is more long-term gains," said RM Vishakha, CEO of IndiaFirst Life Insurance. MUMBAI: The passage of the insurance bill last year was seen as a lifealtering event for the sector but there has actually been a decline in capital deployed in the last financial year .

Source: Economic Times July 03, 2016 23:37 UTC