After its bailout, American International Group (AIG) has begun recasting its global operations and even its Indian operations are not left untouched.
AIG has Tata AIG Life Insurance and Tata AIG General Insurance where it holds 26% each. Along with this it has 100% fully owned AIG Mutual fund managing funds of around Rs.3000 crores.
AIG also has other businesses of aircraft leasing, real estate, private equity, consumer finance, and business processing outsourcing in India although insurance still remains its chief business.
It is very likely that AIG will retain its partnership with Tata, while sell off its AMC business to other companies who are intending to enter the Indian market.
While for other smaller businesses, the status still remains unclear.
AIG needs fund urgently to repay its loan which it has taken from US Federal Reserve for 2 years but it is very likely that it won’t receive good valuations for its business owing to the falling markets and reduced interests in equity markets. source