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Posts Tagged ‘AIG’

One of the biggest headline now in the Philippines is the sale of Philippine American Life and General Insurance Co. (Philamlife), which is considered as the biggest insurance company in the country in the past 60 years.

Philamlife President Jose Cuisia Jr. has assured clients that this will not affect its operation or its ability to pay claims or compromise clients’ investments.

Philamlife, is the locally incorporated wholly-owned subsidiary of insurance giant American International Group or AIG.

AIG, considered by Forbes 2008 as the 18^th largest company in the world was badly hit by the U.S. financial crunch and just recently received $85 billion rescue loan from the government.

AIG announced last Friday its decision to give up Philamlife in its plans in global streamlining.

JP Morgan and Blackstone Group, which were the two investment banks tapped by AIG to handle the sale will determine whether it will be sold as one group or will be broken down into several units.

Analysts says that this will attract local conglomerates such as San Miguel Corporation and Ayala group and other local and foreign companies in offering its bid on the company.

There were also reports that prospective buyers include taipan, Ambassador Alfonso Yuchengco of Rizal Commercial Banking Corporation; tycoon George Ty of Metropolitan Bank and Trust Co., as well as retail and mall magnate, Henry Sy of BDO Unibank Inc.

Also, global insurance rivals with local operations Sun Life of Canada, Manufacturers Life Insurance Co. (Manulife) and British financial giant Prudential plc. shows interests.

According to the Insurance Commission, Philamlife has P108 billion in assets and a net worth of P21.4 billion as of 2007.