New Delhi (PTI): Insurance regulator IRDA has asked insurance firm Tata AIG, floated by Tata Group and American Insurance Group (AIG), for a report on its operations here following reports that AIG was in deep financial trouble.

"Having regard to the developments reported in USA, the IRDA has asked for the reports of the companies in the matter," the regulator said in a statement.

AIG holds 26 per cent and Tatas 74 per cent in the JV business that offers both life as well as general insurance.

The statement said that the recent developments in the New York Financial Markets have caused concern in the financial markets in India.

Certain newspapers have reported that AIG, which is a leading insurance group of the USA, has sought financial support from the Fed Reserve and have voiced concerns about the impact the developments in AIG would have on the general and life insurance companies in India, it said.

IRDA also noted that the accounts of these two companies as on March 31, 2008 indicate that both companies have satisfactory solvency margins which are adequate to meet their liabilities.

Both the companies are registered under the Indian Companies Act and are bound by the provisions of the Insurance Act and other Regulations, it said.

AIG Group, operating in the country for more than five year, has 12,000 employees.