Mumbai, Sep 18: Tata AIG Life on Thursday, Sep 18 said the US Financial Crisis, involving its partner AIG, will not have any immediate material impact on its operations. The Company, in a release said it was well capitalised and is subject to stringent local regulatory and capital requirements. The Tata Group holds majority stake (74 per cent) in the company and AIG and/or its affiliates hold a minority stake (26 per cent).
The company is governed by the Insurance Regulatory and Development Authority (IRDA) and our local solvency margin as at the end of August 2008 stood at over 300 per cent compared to the regulatory minimum of 150 per cent.
The company continues to operate in the normal course to meet its obligations to its clients and policy holders, the release added.
Tata AIG said the Indian business is robust and growing - Tata AIG Life's branch distribution network expanded from only 80 offices to nearly 400 offices during the past 18 months, advisor strength has moved up from approximate 26,000 to 78,000 over the same period. Total revenues stood at Rs 2339 crore for the 2007-08 fiscal.
AIG, in a separate release, said the 85 billion dollar support from the Federal Reserve bank of New york would ensure that the company could meet its immediate liquidity needs. ''AIG believes that the loan, which is backed by profitable, well-capitalized operating subsidiaries, with substantial value, will protect all AIG policyholders and give sufficient time to conduct asset sales to repay the loan and enable AIG's businesses to continue as substantial participants in their respective markets. AIG has strong well-positioned businesses in diverse markets around the world and a deep asset base'' the release added.
AIG's Asset Management business in India is well capitalized and governed by stringent SEBI regulations that ensure that client assets are segregated in a separate trust. ''Our Investments, Consumer Finance and captive software development functions continue to operate in their normal course. We continue to be fully dedicated and committed in discharging our fiduciary responsibility to our customers and unit holders'' it added.