The American International Group India on Thursday issued a release stating that the US financial crisis does not have any immediate material impact on Tata AIG Life Insurance.
"Tata AIG Life is well capitalised and is subject to stringent local regulatory and capital requirements. Our (Tata-AIG Life) solvency margin at the end of August 2008 stood at over 300 per cent compared to the regulatory minimum of 150 per cent. Total revenues stand at Rs 2,339 crore for 2007-08." Tata-AIG Life and Tata-AIG General Insurance are two insurance joint ventures, where Tata Sons owns 74 per cent, while the remaining 26 per cent is owned by AIG.
"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," said the statement from AIG India.
The Federal Reserve Bank of New York is providing a two-year, $85-billion secured revolving credit facility to AIG that will ensure the company to meet its immediate liquidity needs.
"AIG believes that the loan, which is backed by profitable, well-capitalised 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," said the company in a release.