AIG to keep Philamlife after getting more US aid

MANILA, Philippines - American International Group, Inc. (AIG) maintained its ownership of the Philippine American Life and General Insurance Co. (Philamlife) after it received additional bail out money from the US government this week. Philamlife, the country’s largest insurer, will be subsumed under American International Assurance Co. Ltd. (AIA), AIG’s Asian unit, as part of an “independent operation." The move will have benefits for Philamlife’s customers, employees, and agents, AIA said in a statement issued by Philamlife. It is "appropriate at this time" to include Philamlife in the new AIA structure, a move that “will further improve the structure and business of Philamlife," AIA president Mark Wilson said in a statement. AIA claims to be Asia’s leading insurance company. The announcement to keep Philamlife came after the US Federal Reserve allotted an additional $30 billion this week to assist AIG, which received an $85 billion bailout from the US government last year. Earlier, AIG agreed to sell Philamlife to pay for its debts. Some businesses are ready for sale while some will either be held for "later divestiture," the same statement said. Businesses such as American Life Insurance Company (ALICO) and AIA will continue to review their divestiture options including public offering of shares which will depend on market conditions. Delaware-based financial service arm ALICO has a 99.98 percent stake in Philamlife. “Philamlife is and has historically been a strong business. It is a leading life insurer in the Philippines with the widest network of offices, largest number of agents and most extensive portfolio of products and services. Joining the AIA group of companies, subject to regulatory approvals, will provide Philamlife with access to the resources and Asia-wide network of the region’s market leader," Philamlife President & CEO Jose L. Cuisia, Jr. said in the same statement. AIA provides consumers and businesses with products and services for life insurance, retirement planning, accident and health insurance as well as wealth management solutions through a network of 250,000 dedicated agents and 20,000 trusted employees across 13 geographical markets. With over 20 million customers in the region, AIA has branch offices, subsidiaries and affiliates located in jurisdictions, including Australia, Brunei, China, Hong Kong, India, Indonesia, Macau, Malaysia, New Zealand, Singapore, South Korea, Thailand and Vietnam. Based on data from the Insurance Commission, Philamlife’s assets of P108.35 billion was the largest among local life insurers in 2007. Its net worth was also the highest at P21.37 billion. Large local conglomerates like the Metrobank Group of tycoon George S.K. Ty, San Miguel Corp., Ayala Corp. and the Yuchengco Group of Companies have expressed interest to buy Philamlife. - GMANews.TV