Good game liao...
Good game liao...
Last edited by kiasi; 16th September 2008 at 05:52 PM.
So wats the update from our own financial district?
Under the plan, AIG (AIG.N) will be permitted to shift the funds from its insurance subsidiaries to the parent company, New York State Governor David Paterson told a press conference...
i personally think we better seek MAS on this matter.
i dun really mind to give up with a small loss rather than not having anything in the end.
erh...i got a spam sms on this...
and an indian-accent guy called me on this...said from some tourism industry
i said not interested.
he slam the phone on me..
as we are here, queues of people are outside aia building, cashing out their policies. aia singapore expected to issue a press statement soon. watch out.
Should be assured... for the time being...
Sep 16, 2008
AIA policyholders get assurance
By Lorna Tan
THE world's largest insurer, New York-based American International Group (AIG), is rushing out details of plans to turn around the firm, which has been hit by the United States financial crisis.
But Singapore policyholders of its subsidiaries AIA and American Home Assurance Singapore (AHA) have been reassured that their policies will be honoured - irrespective of the turmoil.
When contacted, the Monetary Authority of Singapore (MAS) said yesterday that AIA Singapore is required under the Insurance Act and Regulations to maintain sufficient financial resources to meet all its liabilities to policyholders at all times.
'AIA currently meets these regulatory requirements. MAS will continue to monitor the financial position of AIA,' MAS stated in an e-mail reply.
MAS added that it has the legislative power to establish a fund to protect policyholders.
AIG said yesterday that it had brought forward the announcement of its reorganisation plans from Sept 25 to last evening. Details were unavailable by press time, but in the works are a major reorganisation and disposal of some assets to raise capital and stave off credit downgrades.
AIG had its rating cut to AA minus in May by Standard & Poor's (S&P) after it reported larger than expected losses in the first three months of this year. As at end-June, AIG's losses amounted to US$13.2 billion (S$18.9 billion).
When contacted, AIA - one of the largest insurers here with 4,000 agents - was unable to comment as it needed clearance from its head office. However, The Straits Times obtained an internal memo, used by staff to respond to customer queries on the issue.
It stated that AIA, as with all other life insurers here, maintained separate insurance funds for policies issued here. 'Any sub-prime losses that may be borne by AIG at the group level have no impact on policyholders here,' it said.
A check on its latest participating life fund report indicated it does not hold any sub-prime securities.
AHA's president Kevin Goulding said it was premature to discuss potential downgrades, but that AHA does not anticipate any impact on premiums or its ability to pay claims.
This is because its buffer is far above what is required by the authorities - so it has sufficient capital here to pay claims. Still, financial experts say that a credit downgrade may cause a perception issue with new and existing policyholders.
'It would create doubts in the minds of policyholders as to whether they should deal with a company that may not be financially secure and whether they should withdraw their existing savings (even at a loss) to prevent it being frozen should the company fail at the later stage,' said former president of the Singapore Insurance Institute Stanley Jeremiah.
The head of a financial advisory firm, who declined to be named, said the impact of a credit downgrade on policyholders' perceptions could not be discounted. 'If people misperceive that there are problems with any financial institution, there will be a run on the bank,' he said.
AIG used to enjoy the highest AAA credit rating awarded by S&P. Such a rating is currently awarded by S&P to Canadian Manulife Financial which has a subsidiary here. Local insurer NTUC Income is rated AA by S&P whilst Great Eastern Life does not subscribe to a rating service.
So if AIG close shop, our investment linked policy with them will be terminated and we will get back the amount as if an early termination? Or we get nothing back at all?
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To all clupsnap brother and sister,
For those who have already bought your insurance from AIG and AIA.Please do not surrender your premier policys which you've already brought some ago cos all the insurance is under MAS,need not to be afraid.If there is something happen to you guys out there and you're protect from these insurance.
Wasnt it a nice coincidence that the big A company started selling an investment with near 20% yield? ie, invest 50k cash to get 9k over a few years. Now that the bubble is burst, many of my family members who dumped the funds in two weeks ago felt cheated by this company. Some agents made cash out before the crisis.
If this company file for chap 11, what kind of guarantee is used as collateral? The worthless paper stocks? What can MAS do if they eventually filed for bankruptcy? MAS role is not a guarantor, all they can do is to monitor with their computer monitors.
This is really bad.
i have 2 policies leh... wow lao... xian....
the non guaranteed returns also get affected right ?
are we guaranteed that the policy is going to continue as usual or what ?
what are most policyholders doing ?
Last edited by zj2000; 16th September 2008 at 10:29 PM.