AIG Coming to India

AIG is seeking a partner in the auto insurance business in India. They have decided to become a bigger player int eh insurance and financial services industry, and thinks that by investing in India they will begin to accomplish those goals. They might to it independently, or with a partner, but they have not fully decided yet.

The group is from New York, but is looking to put down some roots in India. They think that getting into financial areas such as capital recovery and investments that they will increase their market cap. They are looking into the various players in the industry to see where they might be a good fit – they want to examine all possibilities before they jump in.

They are looking into areas such as mortgage guarantee, investments in the country’s infrastructure, and consumer finance – such as personal loans and car loans. They say that they are waiting until after the Reserve Bank in India issues its draft guidelines before moving forward in the mortgage business area. They are also looking into life and other insurance areas, and software development.

As far as consumer finance goes, they are looking to move into personal and home loans first, then moving forward from there. They believe the next logical step would be to credit cards and auto loans.

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