AIG eyes news businesses

American International Group Inc is looking at new businesses to supplement its life and general insurance and private equity businesses in the country.

The extension of its product portfolio would help AIG emerge as a multi-product finance entity.

"Several markets are under study, including mortgage guarantee, asset management and consumer finance," said Sunil Mehta, country head and chief executive, AIG.

Mehta said the highly competitive nature of the finance market in the country necessitated a detailed evaluation of the market size and opportunities. Before stepping into any business, AIG would like to have a business case good enough to induce the international finance major's board to plough more funds into India.

AIG was a global heavyweight in the consumer finance segment. The consumer finance basket would include cards and loans, while pensions could be another extension of the business, Mehta said.

"We have to synergise the new businesses with our existing and growing customer base," he said.

However, AIG would like for a relaxation of the sectoral caps on foreign equity in its businesses. Sectoral equity holding caps have ceased to be an issue and should be relaxed, more so as there exists different caps for different businesses in the finance market, Mehta said.

The life and general insurance business has helped the company line up a large customer base of a profile that was suitable for the new products and businesses under study.

AIG was the only company offering both life and general insurance in the country, and also a heavyweight in the private equity market with more than $400 million in long-term investments primarily in infrastructure, biotechnology, retailing and software segments.

AIG also has the distinction of being a major finance player without an asset management company. Most other companies in the insurance business were in the asset management business before they stepped into insurance.

New sales force soon

AIG was setting up a composite sales force to market its range of products in the country, country head and chief executive of the group Sunil Mehta said.

The new-look sales force may extend to the agency levels as well. The customer will be offered life and general insurance products along with AMC products from Tata AMC.