After exiting from its IT outsourcing outfit, financially battered American International Group (AIG) is now moving up to sell its 26 per cent stake in Tata AIG Life Insurance to its Indian partner. Tata, which has 74 per cent in the life insurance joint venture, has roped in consulting and auditing firm KPMG to structure the deal. However, AIG will continue in another joint venture, Tata AIG General Insurance.
According to analysts, AIG’s 26 per cent stake in Tata AIG Life could fetch up to
Rs 800 crore, as the global financial conglomerate will charge Tata a huge premium for its expertise provided to the JV. Replying to queries on the issue, a Tata Sons spokesperson said, “As stated several times before, we do not wish to comment on such speculation.”
Mumbai-headquartered Tata AIG Life was Launched in the year 2001 and since then has built substantial life insurance operation in India and has some 200 offices across the country and assets of around Rs 10,000 crore. Till now it is uncertain that whether Tata would run the business all by itself or divest the 26 per cent from AIG to other foreign partners.
(source:- indian express)
