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MANILA, Philippines - The sale of Philippine American Life and General Insurance Co. (Philamlife), which has received offers from 10 foreign and local investors, will not affect its ability to pay claims, Philamlife President Jose Cuisia has assured clients.
“We would like to assure our policy holders there is no reason for them to worry, to feel their investments are at risk,” Cuisia said. “We have managed our investment portfolio prudently and conservatively.”
He said the “financial issues pertaining to our parent company AIG do not affect our ability to pay claims and underwrite new policies.”
AIG was among the big financial firms on Wall Street badly hit by the property downturn and the credit crunch in the United States and recently received an $85-billion rescue loan from the US government.
Before a press briefing, Cuisia met with employees and other stakeholders to assure that any change of ownership would neither disrupt the groups' operations nor compromise clients' investments.
Philamlife has about P143 billion worth of insurance contracts with more than one million policy holders in the Philippines.
Cuisia also sent letters to clients, agents, brokers, advisors and other partners to assure that AIG would scrutinize the groups offering to buy out Philamlife.
While it was previously “unimaginable” that Philamlife could be owned by a local group, Cuisia said this auction could only be “positive” for the Philippine market.
“This is an opportunity for local groups within the Philippines to win a trophy company like Philamlife, which has been the industry leader in the past 60 years," Cuisia said.
"AIG is seeking top-rated, financially strong brand names with the capability to continue Philamlife's legacy of leadership, strength, stability and dedication to its policyholders, employees, agents, partners, shareholders and other stakeholders," Cuisia said in his letter, copies of which were distributed to media on Monday.
"Please be assured that we will continue to work with the regulatory authorities to ensure that the divested assets will remain financially sound," Cuisia.
Finance Secretary Margarito Teves, who oversees the Insurance Commission, agreed that the sale of Philamlife would have a "net positive impact" on the domestic insurance industry.
"We anticipate the sale to result in a stronger institution that would provide improved services and greater protection to the Filipino public," Teves said. /Inquirer
