Time is GMT + 8 hours Posted: 18-Sep-2008 23:01 hrs
The logo of troubled insurer American International Group outside their office in the lower Manhattan area of New York. Tata business group which partners troubled insurance giant AIG in an Indian joint venture said Thursday the collaboration was insulated against financial turmoil in the United States.
Tata business group, which partners troubled insurance giant AIG in an Indian joint venture, said Thursday the collaboration was insulated against financial turmoil in the United States.
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The Indian group, which holds a 74-percent stake in Tata AIG Life, said the venture was "well capitalised" and "subject to stringent local regulatory and capital requirements."
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American International Group (AIG), which received an 85-billion-dollar rescue loan Tuesday from the US Federal Reserve, holds the remaining 26 percent equity in the venture with Tata.
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"The company is governed by the Insurance Regulatory and Development Authority (IRDA) and our local solvency margin as at the end of August stood at over 300 percent compared to the regulatory minimum of 150 percent," it said.
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"Indian business is robust and growing," it added.
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AIG in a separate statement also tried to assure its Indian customers.
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"AIG believes the (rescue) loan... will protect all AIG policyholders and give sufficient time to conduct asset sales to repay the loan," it said.
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The Indian government also issued reassurances after the crisis impacted on the domestic market, which fell five percent within minutes of opening on Thursday but later recovered.
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"We have received a full report from the Tata-AIG management and IRDA has spoken to them... Their solvency margins are adequate," Finance Minister Palaniappan Chidambaram told a news conference.
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Unlike Hong Kong, where more than 2,000 AIG policies were terminated by jittery customers, India has so far not reported any panic closures. — AFP
