NEW DELHI: India Inc may not just remain a mute spectator to the
current global financial crisis. A leading Indian business group
has been approached by Citibank to buy out the Singapore-based
American International Assurance Company (AIA), a wholly-owned
subsidiary of AIG. The once formidable US insurance and asset
management giant is now 80% owned by the US government.
AIA is AIG’s flagship life insurance company for Southeast Asia and
is the largest life insurer in the region. It has businesses in
various countries through branches, subsidiaries and affiliates,
including Singapore, India, China, Australia, Hong Kong, Malaysia,
Indonesia, South Korea and Thailand. In India, AIG has a 24:76 life
insurance joint venture with the Tatas.
Sources told ET that Citibank, acting on behalf of AIA, has
approached one of India’s largest diversified conglomerates for a
buyout of the Singapore firm. The Indian company is currently
evaluating the option, and has not taken any decision to make a bid
so far. But if this transaction does materialise, it could well be
one of the largest overseas financial deals struck by an Indian
firm.
AIA has a strong presence in Singapore, a market where it has been
present for the past 70 years. It has more than 2 million
policyholders and operates through 3,800 financial services
consultants, besides having a staff of 800.
AIG’s move to sell AIA seems to be at variance with its earlier
statement that it intends to ‘retain a continuing ownership
interest in its foreign life insurance operations’. The global
financial major had announced global restructuring plans, where it
would refocus on its core property and casualty insurance
businesses.
http://economictimes.indiatimes.com/News/News_By_Industry/AIG_puts_arm_on_block_sounds_out_Indian_company/articleshow/3592281.cms
