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Monday, September 15, 2008

AIG Financial Difficulties Impact on AIA Policies

American International Group Inc (AIG) recent shares sell-off has sparked AIG to launch a survival plan to avoid credit ratings downgrade. AIG, whose shares dipped double figures for the past 2 days, is pulling together a survival plan that includes selling off some of its most valuable assets, raising more capital and going to the Federal Reserve for help, people familiar with the situation said.

AIG owns several companies and one of them being American International Assurance (AIA). It is an insurance company based in Hong Kong and has offices in the Asia-Pacific region. One big question among several policyholders is if your monies safe with AIA. Some advices offered by an insurance veteran for Singaporeans policyholders is as below:
  • AIA has a separate policyholder's fund covering its liability to its policyholders in Singapore.
  • To my knowledge, this fund is solvent and is not affected by the problem faced by AIG
  • There is no need to panic and surrender the AIA policies at this time
  • Even if this fund is in trouble, there is a Policyholder's Guarantee Fund managed by MAS that can take care of most of the liability (maybe 90% or more).
AIG Scrambles to Raise Cash, Talks to Fed

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