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IRDA seeks status report from Tata, AIG

IRDA seeks status report from Tata, AIG
PTI
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First Published: Tue, Sep 16 2008. 06 55 PM IST
Updated: Tue, Sep 16 2008. 06 55 PM IST
New Delhi: Insurance regulator IRDA is believed to have sought status report from Tata Group and AIG, which holds 26% stake in the life insurance and non-life insurance venture of Tata Group, in the wake of reports that the US firm is facing a financial crisis.
The solvency ratio, which indicates the financial strength of insurers, for both the businesses is not a concern for the moment.
World’s largest insurer AIG Group, operating in the country for more than five year, has 12,000 employees.
Besides insurance business, it has presence in asset management through wholly-owned subsidiary. It is also present in consumer finance and private equity.
AIG is reeling under financial crisis and has sought $40 billion in bridge loan to stave off the crisis.
AIG’s ills came to fore, when credit rating agencies — Standard and Poor’s Moody’s and Fitch lowered the company’s credit scores.
The downgrades, financial analysts said, would make things difficult for AIG and the New York Times said it would force the company to turn over billions of dollars in collateral to its derivatives’ trading partners.
In the face of uncertainty, shares of AIG plummeted more than 60% yesterday.
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First Published: Tue, Sep 16 2008. 06 55 PM IST
More Topics: IRDA | TATA | AIG | Report | Insurance |