Philamlife ‘for sale;’ normal operations assured - CEO

MANILA, Philippines - While its parent company looks for new partners to handle it, the Philippine American Life and General Insurance Company (Philamlife) assured its stakeholders it will be "business as usual" during the "process."

In full-page ads placed in several major newspapers Tuesday, Philamlife president and CEO Jose Cuisia Jr. said the company will focus on the daily operation of its business.

"As we continue this process, we will focus on the daily execution of our business and continue to provide our customers and distributors with the highest level of service. Please be assured that we will continue to work with the regulatory authorities to ensure that the divested assets will remain financially sound. We will continue to write new business and remain committed to meeting customers' needs,"
he said.

Cuisia said Philamlife's parent company, American International Group (AIG), is seeking top-rated financially strong brand names with capability to continue the firm's operations.

He reiterated Philamlife's legacy of "leadership, strength, stability and dedication to its policyholders, employees, agents, partners, shareholders and other stakeholders."

Also, he reassured that Philamlife is strong and well-capitalized with net worth of P49.5 billion as of December 31, 2007, and with over P170 billion in assets.

"The financial issues pertaining to our parent company AIG do not affect our ability to pay claims and underwrite new policies," he stressed.

Cuisia said AIG is now refocusing on core property and casualty insurance business to repay its loan from the Federal Reserve Bank of New York.

The insurance company had been identified for possible divestment along with some of Philamlife affiliates, he noted.

"Philamlife is a crown jewel of AIG and has built excellent brand equity being the only financial institution in the country with the distinction of five Platinum Trusted Brand awards. This makes Philamlife a very attractive company," he said. - GMANews.TV

Policy interests protected, says AIG-Philamlife

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. -

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.

(Philstar News Service)