Tamil Nadu has emerged as the third-largest contributor to Kotak Mahindra Life Insurance Company (Kotak Life), accounting for 9% of the insurer's overall business in India. In FY26, the company reported assets under management (AUM) of ₹1,03,156 crore, marking a 12.4% year-on-year increase from ₹91,807 crore in FY25. Mahesh Balasubramanian, Managing Director and CEO, stated that the company is expanding its presence in Tamil Nadu with new branches in smaller towns, aiming to leverage the state's growing industrial landscape.
AUM Growth and Product Mix
Kotak Life's five-year AUM compound annual growth rate (CAGR) stands at approximately 17%. Following the GST reform in September 2025, which exempted all individual life insurance policies—including term plans, endowment policies, and unit-linked insurance plans (ULIPs)—from GST, the industry witnessed significant growth in protection products. Kotak Life has more than doubled the share of protection products in its overall product mix. In Tamil Nadu, the product mix comprises 80% traditional products, 15% ULIPs, and 5% protection products.
Growth Plans for FY27
The life insurance industry is expected to grow at a CAGR of 13% to 15%. Balasubramanian emphasized the company's ambition to grow beyond the mid-teens to increase market share. "Our objective is to outperform the industry, particularly the private sector. Our five-year CAGR has been around 14% to 15%, and we aim to grow slightly faster to gain market share," he said.
Coverage and Tamil Nadu Performance
Kotak Life has covered over four crore lives. On the individual side, the company is witnessing healthy growth in the number of lives covered. In Tamil Nadu, individual business grew 20% year-on-year in FY26, surpassing the company's overall individual growth of 17%. Balasubramanian expects Tamil Nadu's contribution to rise to 10%-12% over the next three to five years.
Expansion in Tamil Nadu
Kotak Life currently operates 46 branches across 18 cities and 31 districts in Tamil Nadu. The remaining districts are served through bancassurance partners, including Kotak Mahindra Bank. Last year, the company added eight branches in the state and plans to add five more this year. Balasubramanian highlighted the strength of the agency business and the company's role as the Insurance Regulatory and Development Authority of India's (IRDAI) appointed insurer for the State-Level Insurance Committee, focusing on building insurance awareness.
Capitalizing on Industrialization
Tamil Nadu is one of India's most developed states, with high per capita GDP and urbanization. Kotak Life plans to set up a new branch in Kumbakonam, recognizing the delta region's significant contribution. The company has tie-ups with major banks and non-banking financial companies (NBFCs) operating in Tamil Nadu and elsewhere. Kotak Mahindra Bank remains the largest partner. Balasubramanian noted, "We are able to see faster growth in a higher share of our business in Tamil Nadu compared to our own national market share."
The insurer's focus on expanding distribution networks and conducting insurance-awareness programs aims to ensure that business in Tamil Nadu grows faster than the company's overall growth rate.
