Business well capitalised: Tata AIG

Tata AIG Life Insurance business is well capitalised and continues to meet obligation to policyholders and clients, the insurer said in a release today.

"Our local solvency margin as at the end of August 2008 stood at over 300 per cent compared to the regulatory minimum of 150 per cent," Tata AIG Life said.

Tata group holds 74 per cent in the joint venture and AIG holds the remaining.

Concerns over Tata AIG Life's payment capabilities started surfacing following AIG's huge losses after its investments sank due to the US subprime mortgage crisis. But the US Federal Reserve agreed to inject $85 billion into the insurance giant.

In India, the company said that its business is robust and growing. "Our branch distribution network expanded from only 80 offices to nearly 400 offices during the past 18 months, our advisor strength has moved up from 26,000 to 78,000 over the same period," the company said in the statement.