The Tata Group said on Tuesday that it was studying the impact of insurance partner American International Group (AIG) selling its Asian operations to British insurance major Prudential, which is an ally of ICICI Prudential — a rival of Tata AIG.
“Any comment will be made post-studying the statement made by AIG in the US. For Tata AIG, it’s business as usual,” said a Tata Group spokesperson.
Britain's Prudential said on Monday it had reached an agreement for a $35.5-billion deal to buy the Asian arm of AIG that would transform Pru into the largest insurer in Asia. However, it is not clear if the Indian operations are part of the deal.
The Tata Group has a life and a non-life insurance joint venture with the now bankrupt AIG which has been bailed out by the US government In both the insurance companies, AIG holds a 26 per cent stake, the maximum a foreign company can hold in an insurance business.
There could regulatory questions in the aftermath of the latest deal. Experts say Tatas may have to buy out AIG or get another partner if Pru gets AIG’s stakes.