Press Release for immediate publication
Tata AIG Life
Business as Usual
AIG successfully obtains revolving credit of $ 85 billion
Mumbai, 18/09/08: The recent developments in the global financial markets have been truly extraordinary. As the US financial crises goes through some challenging times, we wish to assure you that this does not have any immediate material impact on Tata AIG Life.
Tata AIG Life is well capitalized and is subject to stringent local regulatory and capital requirements. The Tata Group holds majority stake (74%) in the company and AIG and/or its affiliates hold a minority stake (26%)
The company is governed by the Insurance Regulatory and Development Authority and our local solvency margin as at the end of August 2008 stood at over 300% compared to the regulatory minimum of 150%.
The company continues to operate in the normal course to meet its obligations to our clients and policyholders.
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 stand at Rs.2339 crores for the 07-08 fiscal.
Recent development at AIG:
The Federal Reserve Bank of New York is providing a two-year $85 billion secured revolving credit facility to AIG that will ensure that the company can meet its immediate liquidity needs. AIG is a solid company with over $1 trillion in assets and substantial equity. 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.
About Tata AIG Life Insurance Company Ltd
Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint venture company, formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life combines the Tata Group’s pre-eminent leadership position in India and AIG’s global presence as on of the world’s leading international insurance and financial services organization. The Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 per cent. Tata AIG Life provides insurance solutions to individuals and corporates. Tata AIG Life Insurance Company was licensed to operate in India on February 12, 2001 and started operations on April 1, 2001.
The Tata Group
The Tata Group is one of India's largest and most respected business conglomerates, with revenues in 2006-07 of $28.8 billion (Rs129,994 crore), the equivalent of about 3.2 per cent of the country's GDP, and a market capitalisation of $72.2 billion as on December 6, 2007. Tata companies together employ some 289,500 people. The Tata Group has operations in more than 85 countries across six continents, and its companies export products and services to 80 countries.
American International Group, Inc. (AIG)
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.
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