Shares of Aditya Birla Capital rose nearly 2% on Thursday after its life insurance subsidiary, Aditya Birla Sun Life Insurance Company Limited (ABSLI), received approval from the Insurance Regulatory and Development Authority of India (IRDAI) to launch an index-linked annuity product.

The product, claimed to be the industry’s first index-linked annuity offering, “Index Guaranteed Annuity Plus,” is scheduled for launch in March 2026.

Following the announcement, shares of Aditya Birla Capital rose as much as 1.6% to ₹359.05 on the BSE, while its market capitalisation climbed to ₹93,010 crore.

The new plan is a single- or limited/regular-premium annuity product designed to provide lifetime retirement income through a combination of guaranteed and variable payouts. The variable component will be linked to the performance of the Nifty 50 benchmark index, ABSLI said in a statement.

“The plan offers flexibility to customise the proportion of guaranteed and variable annuity components, enabling policyholders to balance income stability with growth potential. Furthermore, policyholders will have the option to receive annuity income immediately or defer payouts based on individual retirement planning needs,” the release said.

The product allows customers to choose the mix between guaranteed and index-linked annuity components, offering a balance between income stability and potential market-linked upside.

“We sincerely thank IRDAI for its concurrence on this unique product proposition, which we believe will benefit all stakeholders. At ABSLI, our focus is on empowering customers with solutions that support financial independence and security across life stages, including retirement. ABSLI Index Guaranteed Annuity Plus enables customers to tailor their lifetime retirement income through a combination of guaranteed and variable annuity payouts, helping them build a stable and personalised retirement solution,” said Kamlesh Rao, MD & CEO of Aditya Birla Sun Life Insurance Company.

According to the company, ABSLI will offer three annuity options: Life Annuity; Life Annuity with Return of Purchase Price; and Deferred Life Annuity with Return of Premium. Premium payment options include single pay or limited/regular pay terms ranging from two to 10 years, with annuity payouts available on a monthly, quarterly, half-yearly or annual basis.

The product is aimed at individuals aged 40 to 80 years, depending on the chosen option. ABSLI said the plan seeks to address rising retirement concerns, including inflation and longevity risks, by combining guaranteed income with market-linked growth potential.

The company added that the newly approved index-linked annuity plan could potentially deliver higher payouts than a traditional fully guaranteed annuity, depending on market performance.

For instance, a 50-year-old customer who pays premiums for 10 years and opts for a 60:40 split between guaranteed and market-linked components could receive a higher first-year payout at age 60 compared with a regular guaranteed plan.

For comparison, ABSLI’s existing fully guaranteed annuity offers a fixed lifetime rate of 8.91%. Under the new plan, the first-year annuity rate could be 11.64%, based on historical returns of the Nifty 50, a potential difference of 2.73 percentage points.

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