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

AIG STATEMENT ON ANNOUNCEMENT BY FEDERAL RESERVE BOARD OF $85 BILLION SECURED REVOLVING CREDIT FACILITY ADDRESSES LIQUIDITY ISSUES

Contact: Charlene Hamrah (Investment Community) 212-770-7074
Nicholas Ashooh (News Media) 212-770-3523
AIG STATEMENT ON ANNOUNCEMENT BY FEDERAL RESERVE BOARD OF $85 BILLION SECURED REVOLVING CREDIT FACILITY
ADDRESSES LIQUIDITY ISSUES AND POLICYHOLDER CONCERNS
NEW YORK, September. 16, 2008 - The Board of Directors of American International Group, Inc. (NYSE:AIG) issued the following statement in response to today’s announcement by the Federal Reserve Board 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 AIG Board has approved this transaction based on its determination that this is the best alternative for all of AIG’s constituencies, including policyholders, customers, creditors, counterparties, employees and shareholders. AIG is a solid company with over $1 trillion in assets and substantial equity, but it has been recently experiencing serious liquidity issues. We believe the loan, which is backed by profitable, well-capitalized operating subsidiaries with substantial value, will protect all AIG policyholders, address rating agency concerns and give AIG the time necessary to conduct asset sales on an orderly basis. We expect that the proceeds of these sales will be sufficient to repay the loan in full and enable AIG’s businesses to continue as substantial participants in their respective markets. In return for providing this essential support, American taxpayers will receive a substantial majority ownership interest in AIG.
“We commend the Federal Reserve and the Treasury Department for taking this decisive action to address AIG’s liquidity needs and broader financial market concerns. We thank them for their leadership during this critical time for the global financial markets. We also thank Governor Paterson, Commissioner Dinallo, Commissioner Ario, the other state Commissioners, and the Office of Thrift Supervision for their willingness to assist AIG.
“Policyholders of AIG companies around the world can rest assured that AIG’s commitments will continue to be honored.”


It should be noted that the remarks made in this press release may contain projections concerning financial information and statements concerning future economic performance and events, plans and objectives relating to management, operations, products and services, and assumptions underlying these projections and statements. It is possible that AIG's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these projections and statements. Factors that could cause AIG's actual results to differ, possibly materially, from those in the specific projections and statements are discussed in Item 1A. Risk Factors of AIG's Annual Report on Form 10-K for the year ended December 31, 2007, and in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations of AIG's Quarterly Report on Form 10-Q for the period ended June 30, 2008. AIG is not under any obligation (and expressly disclaims any such obligations) to update or alter its projections and other statements whether as a result of new information, future events or otherwise.

American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.