All AIA insurance policy holders come in...
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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...
http://news.yahoo.com/s/nm/20080915/bs_nm/aig_dc
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.. :sweat:
and an indian-accent guy called me on this...said from some tourism industry
i said not interested.
he slam the phone on me.. :sweat:
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.
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? :dunno: :angry:
next time, don't bother to answer, u just slam down the phone.
there was once a china 妹妹 asks on the phone
"先生, 你会说华语吗"
I slam it at once!!! must be some scam
fr the article above "so it has sufficient capital here to pay claims" , some comfort to u.
No doubt, still worry as AIG is shaking alrdy. what u guys plan to do? let it be or sit n observe or pull out pre-maturely
Actually when I said that I can't speak Chinese, she slammed the phone first. So rude ! :what:next time, don't bother to answer, u just slam down the phone.
there was once a china 妹妹 asks on the phone
"先生, 你会说华语吗"
I slam it at once!!! must be some scam
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.
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.
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.
You don't have to worry, these sort of guaranteed yield products are backed by bonds with high ratings (normally AAA to AA). The bonds are held in a separate account for the policy holders. They belong to the policyholders and cannot be touched by the liquidators.
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 ?
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 ?
The insurance is not under MAS. Unlike banks, insurance companys do not have to deposit part of the reserves under MAS, however they are required to maintain reserves to meet their future liabilities + a buffer. These reserves belongs to the policyholders and not the insurance company and so the company is not allowed to withdraw the money as and when even when lenders come a knocking.
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