‘We are targeting 10%-12% growth over next 3-5 years in TN’

Tamil Nadu ranks third in terms of business contribution to Kotak Mahindra Life Insurance Company (Kotak Life), accounting for 9% of the insurer’s overall business in the country. In FY26, it reported assets under management (AUM) of 1,03,156 crore, up 12.4% year-on-year from 91,807 crore in FY25. In an interview, Mahesh Balasubramanian, MD and CEO, said the company is expanding its presence in TN with new branches in small towns and will capitalise on its growing industrial landscape. Excerpts:

How has your Assets under Management (AUM) grown?

If you look at the value-creation metrics, Kotak Life continues to build a sustainable, scalable business. Our five-year AUM CAGR is about 17%. Ever since the GST reform (under which GST exemption was granted for all individual life insurance policies, including term plans, endowment policies and unit linked insurance plans (ULIPs), from Sept 2025), the industry has seen growth in protection products. We have virtually more than doubled the share of protection products in our overall product mix. In Tamil Nadu, our product mix comprises 80% traditional products, 15% ULIPs and 5% protection products.

What are your growth plans for FY27?

The life insurance industry will grow at a CAGR of about 13% to 15%. We would like to grow beyond the mid-teens so that we can increase our market share. Our objective is to outperform the industry. We want to do better than the private sector industry. If you look at our five-year CAGR, we have been growing at about 14% to 15%. The idea is to grow slightly faster than that so that we can gain market share.

How many lives did you cover in FY26?

We have covered more than four crore lives. On the individual side, we are seeing healthy growth in the number of lives covered.

What about the Tamil Nadu market?

Tamil Nadu contributes 9% of Kotak Life’s overall business. While our individual business grew 17%, Tamil Nadu recorded 20% YoY growth in FY26. We expect this contribution to increase to 10%-12% over the next three to five years. We have 46 branches across 18 cities and 31 districts, while the remaining districts are served through bancassurance partners, including Kotak Mahindra Bank. Last year, we added eight branches in TN. We will probably add another five branches this year. We are also strong in the agency business. Tamil Nadu remains a key focus market for us. We are also the Insurance Regulatory and Development Authority of India’s (IRDAI) appointed insurer for the State-Level Insurance Committee. We do a lot of work in terms of building insurance awareness in the state.

How are you looking to grow in the state?

One focus is on expanding our distribution network in TN. We are looking at increasing awareness through the insurance-awareness programmes we conduct in the state. The objective is to ensure that our business in Tamil Nadu grows faster than the company’s overall growth rate.

How do you look at capitalising on the opportunity offered by industrialisation here?

Tamil Nadu is one of the most developed states in the country. Today, the per capita GDP of TN is among the highest in the country. Also, there is good urbanization. We will soon set up our own branch in Kumbakonam. The entire delta region contributes a lot to our business. We are present in almost all the major towns in the state. We have tie-ups with almost all the major banks and NBFCs operating out of TN and also operating elsewhere in the country with a branch in the state. For instance, Kotak Mahindra Bank is the largest partner. We are able to see faster growth in a higher share of our business in Tamil Nadu compared to our own national market share.