AIA Bhd Not Impacted By The Financial Crisis In United States

KUALA LUMPUR, Sept 17 (Bernama) -- American International Assurance Bhd (AIA Bhd) is not impacted by the ongoing financial issues in the United States, its chief executive officer, Khor Hock Seng said Wednesday.

Hence, the company reassured all customers and policyholders that it was carrying on business as usual.

"We take pride in the fact that we are a locally incorporated insurer. More than 96 percent of our total assets are invested in Malaysia," Khor said in a statement here Wednesday.

"Insurance policies underwritten by AIA Bhd are direct obligations of our regulated business, which is subject to stringent local regulatory and capital requirements as prescribed by the Insurance Act and Regulations," he added.

He also said that AIA Bhd is well capitalised and that the company maintains separate reserves in Malaysia.This is in line with the regulations to meet obligations to policyholders.

AIA Bhd's statement comes in the wake of news that the giant American International Group Inc in the United States is reeling from billions of dollars in souring mortage debt.

The Federal Reserve Board of the United States had on Sept 16 announced that the Federal Reserve Bank of New York would provide a two-year, $85 billion secured revolving credit facility to AIG to ensure the company met its liquidity needs.

According to Khor, given AIA Bhds six decades of market experience, he was confident that the company would continue to meet the growing needs of all Malaysians while being the leading provider of insurance and financial services in the country.

-- BERNAMA