Philamlife receives takeover offers

The Philippine unit of American International Group (AIG), the country’s biggest insurance company, has received takeover offers from several groups, including the Yuchengco business clan, a top company official said yesterday.

“It’s only the Yuchengcos that have come out in public,” Jose Cuisia, president and chief executive of AIG unit Philippine American Life and General Insurance Co. (Philamlife) told reporters.

“They have expressed interest like others have also expressed interest.”

The Yuchengcos own the country’s sixth largest listed bank, Rizal Commercial Banking Corp. and unlisted insurer Malayan Insurance Inc.

Although there were interested buyers, Cuisia said it is possible that the US Fed would not sell Philamlife when the AIG is rehabilitated.

According to Cuisia, the company has been categorized as one of AIG’s core assets which were not likely to be sold.

RCBC could not be reached for comment.

“I cannot disclose that, they have indicated it in private,” Cuisia said when asked about the other interested buyers of Philamlife.

He said however that AIG had not finalized any decision on what it would do with its Philippine unit, which has total assets of P170 billion. Philamlife also has interests in banking, asset management and outsourcing.

AIG, which was thrown an $85-billion lifeline loan by the US Federal Reserve earlier this month, plans to sell more than 15 businesses, including its aircraft leasing unit, to repay its loan.

AIG, once the world’s most valuable insurer, would likely make an announcement on its assets sales on Oct. 3, Cuisia said.

AIG chairman and chief executive Edward Liddy is set to host a conference call for the investment community on Friday, where he is expected to give an update on AIG’s future direction.