MANILA, Philippines - The American International Assurance Co. Ltd. (AIA) said that it achieved solid operating results despite the difficult economic environment.
AIA completed legal restructuring last month to bring the various AIA entities in the Asia Pacific region together to form the AIA group. It has been under the wings of bankrupt American International Group (AIG) until the restructuring.
In a statement, AIA claims that the group is financially strong with a combined solvency ratio on a pro forma basis of over 200 percent of regulatory requirements. The AIA group currently has assets of more than $60 billion.
The shares of AIA will be put into a specially created separate legal entity subject to relevant regulatory approvals. This special entity, which will issue common interests to be owned by AIG and preferred interests to be owned by the Federal Reserve Bank of New York, has been created in part to allow AIA to be positioned as an independent operation.
“The planned separation of AIA from AIG represents a major step forward for AIA and will reinforce our position as a leading company in Asia. This structure provides increased clarity for customers, staff, agents, regulators and all stakeholders. The planned separation of AIA from AIG seems to have been well received, which is reflected in the revised ratings by S&P,” Mark Wilson, AIA president, said.
Standard & Poor’s (S&P) has affirmed the group’s ‘A+’ financial strength rating and removed it from CreditWatch.
At the same time, AIA said it would continue to review strategic options, which ultimately may include an initial public offering of shares, depending on market conditions.
The Philippine American Life and General Insurance Co. (Philamlife) has been placed under the AIA from AIG, and it (Philamlife) has stepped down from the auction block.
Wilson said that AIA remains committed to its growth strategies and strategic growth projects. During the year 2008, the AIA group successfully recruited over 52,000 new agents.
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 an extensive network of 250,000 agents and 20,000 employees across 13 geographical markets, the AIA group serves over 20 million customers in the region.
The group has branch offices, subsidiaries and affiliates located in Australia, Brunei, China, Hong Kong, India, Indonesia, Macau, Malaysia, New Zealand, Singapore, South Korea, Thailand and Vietnam.