Policy interests protected, says AIG-Philamlife

MANILA, Philippines –  With the current financial issues in the US affecting its parent company, American International Group, Inc. (AIG), the Philippine American Life and General Insurance Co. (Philamlife) assures its customers and policy owners that their interests are protected with the company’s financial strength.

The AIG Board has announced on Sept. 16, 2008 that the Federal Reserve Bank of New York is providing a two-year $85 billion secured revolving credit facility to AIG that will ensure the company can meet its liquidity needs. The new AIG head Edward Liddy said, “The Federal Reserve Bank’s decision is a tremendous vote of confidence in AIG’s future.”

In a statement, Philamlife president and CEO Jose Cuisia Jr., said that “Philamlife is very adequately capitalized. We have the strongest balance sheet in the life insurance industry and we continue to pursue a conservative investment strategy aimed at minimizing risks and maximizing returns to our clients.”

As of Dec. 31, 2007, Philamlife has consolidated assets of P170 billion and consolidated Stockholders’ Equity of P49.5 billion. In 2007, revenues amounted to P36.7 billion reflecting a 14 percent growth while New Business from Life Insurance Operations of P7.4 billion was higher by 57.6 percent versus the previous year. Benefits payments totaled P6.6 billion.

As a locally incorporated company, Philamlife is subject to Philippine Insurance Commission (IC) regulations and oversight. Philamlife’s capitalization is separate from the US business with investments and accounts held locally. As of Dec. 31, 2007, Philamlife’s consolidated investments amounted to P164.2 billion (at market). The bulk of invested assets are concentrated in marketable Philippine government securities, corporate bonds and blue chip equities.

Philamlife is capable of meeting its obligation to its clients and providing them with quality service.