‘Bailout won’t affect AIG’s India business’September 17th, 2008 - 11:09 pm ICT by IANS
Chennai, Sep 17 (IANS) The ownership change and the $85 billion bailout of American International Group (AIG) will not have any major impact on the insurance giant’s operations in India, a top official said Wednesday.Speaking to IANS over phone, the AIG India official preferring anonymity said: “I don’t see any impact on AIG’s business in India. Whenever a business opportunity was seen in India the group has ventured in to that.”
AIG, which was on the verge of collapse two days ago, was bailed out by the US Federal Reserve with a two-year loan of $85 billion and in the process it acquired 79.9 percent controlling stake.
This in effect makes AIG an American government company.
However, the official ruled out any negative impact on the company’s India business.
According to him, AIG is in India for the past 15 years and operates in 10 business lines - private equity, insurance-life and non-life in partnership with Tata Sons, AIG Systems and Solutions, asset management company, real estate, consumer finance (Vivek Hire Purchase), business process outsourcing, home finance and aircraft leasing.
AIG India is now planning a joint venture with National Housing Bank for mortgage guarantee business, the official said.
The company has a total workforce of 11,500 people in 500 offices located in 265 Indian cities.
“With the infusion of funds we don’t expect any attrition happening in our operations,” he said.
Speaking about the group’s insurance business in India, he said Tata AIG General Insurance Co Ltd was in the black and has a solvency ratio of 176 percent.
“The Tata AIG Life Insurance has a solvency ratio of 305 percent. Both companies are adequately capitalised,” the official said.
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Tags: aig life insurance, asset management company, general insurance co, insurance co ltd, national housing bank, solvency ratio, tata aig general insurance, tata aig life, tata aig life insurance, tata sons