AIG plans to sell non-insurance business in India

[OhioChick]

Source: The Financial Express India

Posted: Oct 09, 2008 at 0056 hrs IST
Updated: Oct 09, 2008 at 0056 hrs IST

The shake-up in the core operations of American International Group (AIG), after its $85-billion bailout by the US government, will have its ripple effect in the financial conglomerate’s businesses in India.

Barring its two insurance joint ventures with the Tatas—Tata AIG Life Insurance and Tata AIG General Insurance—where it holds 26% each, AIG plans to put all its business units in India, including the nascent asset management business, on the bloc.

AIG had earlier decided that it would retain its commercial property/casualty and foreign general insurance businesses, while selling off some life insurance business. It was also seeking alternatives for its securities lending business.

However, AIG sources close to the development said that while it intends to sell life insurance assets, it wants to retain a continuing majority interest in its foreign life insurance operations, including in India. Currently, AIG has a range of business in India comprising aircraft leasing, real estate, private equity, consumer finance, and business processing outsourcing.

However, AIG’s insurance exposure in India remains the largest, and the rest of the business units are small but with long-term expansion plans. Also, AIG has not revealed the extent of its investments in its several Indian operations.



Read more: http://www.financialexpress.com/news/AIG-plans-to-sell-non-insurance-business-in-India/371146/

[Sub Atomic]

1. Good. This means they don't need an extra $38.5 BB

And that they'll pay back the American Taxpayers out of the rest of the money from the sale.

Right?

:eyes:

[OhioChick]

2. Keep dreaming. n/t