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
Find this article at: http://www.labnol.org/india/corporate/aig-may-have-a-limited-presence-in-india/4866/
Tags: insurance, mutual fund, tata, Corporate, India
Reader Comments
Tata Company assurance to its clientale that they would acquire 26% of the AIG holding in the Tata AIG Life Insurance and Tata AIG Gen Insurance should save the Indian investors who invested in Tata AIG with the big growth pictures shown few years back. Tata’s branding of its insurance and investment options in collobration with AIG had initially seen a big hit in the market, competing with Max New York Life and Aviva Gen Insurance, bringing in a first time hit on the other wise branded LIC=Insurance for Indian households. The statistics reveal that only less 12% of Indian population is insurance. Instead of partnering with global gaints, Tata can revive strategy to explore Indian markets internally. Insurance should not be just for tax benefits, but in true sense provide the finacial security to the families at times of adveristy and biggies like Tata’s, Aviva, SBI should bring in the urge in the public to go for insurance as a standard and not a subsidiary option for tax benefits alone.
Written by Umasree Raghunath on 10.22.08