Guiding consumers since 2009

Business as usual for AIG policyholders in SA

By Staff Writer
Business as usual for AIG policyholders in SA

South Africans that have insurance policies with AIG in South Africa can rest easy despite the financial challenges of its ultimate holding company New York based AIG Inc.

This is because the local operations are financially independent from its parent.

It was announced today that AIG South Africa will remain part of the AIG Inc's core insurance business.

George Kostopoulos, regional general counsel for AIG South Africa, said that AIG in South Africa is financially strong and is in no way affected by the financial challenges of AIG Inc.

"It's business as usual in South Africa. There are strict regulations covering insurance companies and that means that the assets and capital base of AIG South Africa Limited / AIG Life South Africa Limited are protected."
AIG South Africa Limited and AIG Life South Africa Limited are highly regulated companies and protected by local laws which have allowed the company to operate normally by writing new business and paying valid claims.
"We are in a very strong financial position and fully capable of meeting our obligations to policyholders," said Kostopoulos.

The solvency margin for AIG South Africa Limited is 61% compared to a statutory requirement of 15%, while the capital adequacy ratio (CAR) for AIG Life South Africa Limited is 28 times compared with a minimum statutory requirement of 2 times.

AIG has been operating in South Africa for 46 years and today's announcement does not change this. We foresee a continued successful operation in South Africa. The core foreign insurance operations of AIG, including the AIG South Africa companies, have an excellent historical record of generating sound results and continue to exhibit outstanding financial performance.

For the first 6 months of 2008, AIG's international short term insurance operating income totalled $1.5 billion with net premiums of $8.1 billion.

 

Recent Articles

Featured Can your debt be cancelled?

It sometimes happens that you struggle so much to pay your debt that you think of asking your creditor to write it off. But debt doesn’t just get written off. There are conditions that must be met and procedures that must be followed before the creditor cancels your debt.

 

Be financially prepared to lose your job – here’s how

During uncertain times, it’s natural to be concerned about the security of your job. Regardless of your performance at work, you may be out of work if your company is no longer profitable. But what would that mean for your personal finances, and how would you survive if you suddenly lost your income?

Should you save for a new car or finance it over time?

Buying a car is a long-term commitment. You either need to save up for it or pay it off over time, and the option you choose will depend on your personal circumstances and preferences. So, what should you consider when deciding which payment method to make use of?

Older people pay more for car insurance and other myths busted

When it comes to vehicle insurance there are nearly as many myths flying around as there are uninsured vehicles. The bottom line is that an insured vehicle is a safe vehicle that can save you a lot of money in the case of an accident. Yet, the myths persist.

Deals

Gingko Spa Re-opening Special R750 Voucher

Price: R750
When: Until 31 July
Where: Cape Town

Protea Hotel Senior Discount

Price: Available on request
When: Daily
Where: Cape Town

Burger and Lobster Winter Special

Price: R99
When: Daily
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions