Tatas studying AIG's Asia ops sale to Prudential
By PTI |
NEW DELHI: The Tata Group today said it is studying the decision of its insurance partner AIG to sell the Asian operations to British insurance major Prudential. The Tata Group has a joint venture with the now bankrupt American Insurance Group (AIG) for both life as well as non-life insurance businesses, in which AIG holds 26 per cent 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 the AIG (AIA) is already present in the country's life insurance space as ICICI Prudential Life, 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. Therefore, Prudential cannot have stake in Tata AIG Life.
However, it is not yet clear whether or not the deal includes the Indian operations of AIG. Yesterday, Prudential snapped up AIA for $35.5 billion in a cash-stock deal. (Watch)
Announcing the deal in New York, AIG President and Chief executive officer Bob Benmosche said the sale is an effort at restructuring the bankrupt company's business and paying back the US taxpayers.
"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 the AIG (AIA) is already present in the country's life insurance space as ICICI Prudential Life, 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. Therefore, Prudential cannot have stake in Tata AIG Life.
However, it is not yet clear whether or not the deal includes the Indian operations of AIG. Yesterday, Prudential snapped up AIA for $35.5 billion in a cash-stock deal. (Watch)
Announcing the deal in New York, AIG President and Chief executive officer Bob Benmosche said the sale is an effort at restructuring the bankrupt company's business and paying back the US taxpayers.
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