mumbai the tata group is preparing to buy out us insurer aig from the life jv tata aig life insurance the local partner is believed to be doing a valuation of the life companythe possibility of tatas buying aigs stake gathered steam in the aftermath of the global financial slowdown that resulted in aig suffering huge losses the bailout that followed resulted in the us government becoming the largest shareholder in aiginitially there were indications that aig would sell its asian life insurance business earlier this year us metlife uks prudential and french insurer axa had shown interest in buying parts of aigs life insurance business but this could have caused regulatory problems in india as all three multinationals have a presence here through jvsmore recently the us government decided that it would get aig to repay part of the bailout money by selling shares in its asian business under aia an arm of aig through an initial public offerwhen contacted a tata spokesperson said we do not wish to comment on such speculation according to an aig official given aias positioning as an asian insurer presence in the indian market would be crucial indeed aig insiders pointed out that despite the financial crisis aig was quick in infusing money into the indian life insurance jv a chief executive with another life jv company said that aigs plans for life insurance are yet to emerge its not clear which part of the life insurance business they are going to retain and fund through an ipo and which are the pieces they are looking to sell he said but what is clear is that aig plans to continue in the nonlife business where it has a strong position in the marketbut if aia were to be carved out there would be a change in shareholding that would give tatas the option to reexamine the partnership there are indications that things may not be the same at tata aig life insurance for instance the company has for the first time hired a nonaig person as ceo when it appointed suresh mahalingam mr mahalingam was with hdfc standard life as head of marketing before he moved to tata aig as chief operating officer all the three earlier ceos george oommen ian watts and trevor bull were aig executives secondly aig has renamed most of its asian businesses as aia but has kept india out of the rebranding exercise