AIG looks at consumer fin, other sectors

The American International Group, Inc. (AIG) is evaluating the feasibility of entering new sectors in India. Sectors that are on the radar of the company include asset management, consumer finance and retirement savings.

AIG which is a holding company and which operates through its subsidiaries is understood to be keenly studying the Indian market and a final decision to foray in to asset management and consumer finance segments could be taken by early 2006.

Sunil Mehta, country head and chief executive, AIG, told Business Standard that the company was looking at these sectors in India and pointed out that a decision would be taken only after the company completes its feasibility studies.

AIG is known to take very long and arduous feasibility studies before taking a decision. Some time back AIG was in the news for being in talks with SBI for a stake in its asset management company. It is still not known whether AIG would look at the inorganic route or the organic route to make its presence felt in these two sectors.

AIG, Mehta said would also keenly look at attracting some market share of the huge aircraft financing market that is opening up in the Indian market.

"We have already done a couple of deals for the Sahara group. With Indian companies being allowed to fly out to international destinations and the booming domestic market the demand for aircraft is up. We will be looking at doing more such deals in the future apart from looking at market share from the aircraft leasing segment also," Mehta said.

Worldwide AIG's operations are conducted through four segments: general insurance, life insurance, financial services and retirement services and asset management. The general insurance subsidiaries basically write all kinds of property and casualty insurance.

The life insurance subsidiaries offer insurance and financial and investment products. In the financial services segment, AIG participates in the derivatives dealer market, enters into structured transactions and invests in a diversified portfolio of securities.

The retirement services and asset management segment offer a variety of investment vehicles and services, including variable annuities, mutual funds and investment asset management.

AIG already has a stake in two insurance ventures in India, both life and general, with the Tata Group.