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The Tata Group has a joint venture with the now bankrupt AIG for both life as well as non-life insurance businesses, in which AIG holds 26% stake
The Tata Group on Tuesday said that it was studying the decision of its insurance partner American Insurance Group (AIG) to sell the Asian operations to British insurance major Prudential.
The Tata Group has a joint venture with the now bankrupt AIG for both life as well as non-life insurance businesses, in which AIG holds 26% stake.
"Any comment will be made post-studying the statement made by AIG in the US. For Tata AIG, it's business as usual," a Tata Group spokesperson told PTI.
Prudential, which would acquire the Asian operations of AIG (AIA) is already present in the life insurance space in the country with a joint venture with ICICI Bank.
ICICI Prudential Life is a 26:74 joint venture between Prudential and the country's largest private sector lender ICICI Bank.
As per the norms, an insurance player cannot hold stakes in two insurance firms in the country. So by that yardstick, Prudential cannot have stake in Tata AIG Life. However, it is not yet clear whether the deal includes the Indian operations of AIG or not.
Yesterday, Prudential snapped up AIG's Asia operations (AIA) for $35.50 billion in a cash-stock deal.
Announcing the deal in New York, AIG president and chief executive Bob Benmosche had said that the sale is an effort at restructuring the bankrupt company's business and pay back US taxpayers.
Shadi Katyal
1 decade agoAIG has a lot of financial problems but it has not been declared bankrupt as per this article.
as of yesterday news was that Prudential has agreed to buy and funds thus received will be paid off to US Treasury as it owes a very large amount for being helped