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MOF: AIG Vietnam unaffected by US woes   2008-09-19 - VNE

The Ministry of Finance (MOF) yesterday said that AIG Vietnam’s financial indexes remained strong and that the company will be unaffected by US-based AIG Group’s chapter 11 proceedings.


Clients at  AIG office in Singapore (Photo AFP)

Pham Dinh Trong, Deputy Director of the Insurance Management Department under MOF, said that AIG Vietnam will not take the brunt of AIG Group’s woes in the US. The financial indexes of two subsidiaries of AIG Vietnam, Non-life and Life Insurance Companies, show that they can endure the solvency.


AIG Vietnam Life Insurance began operating in Vietnam in 1999 with chartered capital of VND 920 billion. Liquidity in the company stands at 229% of the level required by MOF.


AIG Vietnam Non-life Insurance began operating in Vietnam in December 2005 with chartered capital of VND 320 billion. By August 31, 2008, the company’s total assets had reached VND 353 billion. Its payment capability is 28 times higher than the minimum level required by MOF.


Trong said that both the companies are independent legal entities from the parent group in the US.


He went on to say that after local newspapers reported on the AIG Group fall out, MOF sent a letter to AIG Group, asking for clarifying information about the group and companies in Vietnam.


“We got good information, and AIG has confirmed it would maintain normal operations and sufficient capital in Asia, including Vietnam,” Trong said. “We have also asked AIG Vietnam to hold a press conference to reassure the public,” he added.


Terence R. Andersen, General Director of AIG Non-life Insurance, said that the company will be running as normal. He also said that AIG Vietnam is strengthening risk management.


When news spread about AIG’s problems, investors in Asia became concerned.


AFP reported that hundreds of people queued in front of AIG offices in Singapore yesterday on Wednesday and Thursday in order to reclaim their insurance premiums.


AIG”s clients in Hong Kong, Taiwan and other countries in Asia are also worried about their money, though local authorities have promised to guarantee their investments.

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