AIG shows its strength
Annual profits are up over 30% for AIG despite the huge losses experienced by its parent company in the US
|
AIG South Africa proved its financial solidity this week after
reporting that its annual profits had grown a staggering 32% in 2008. This was
despite the huge losses experienced by its parent company in the United States,
AIG Inc., which announced a fourth quarter loss of $61.7 billion.
AIG South Africa, which has been part of the local insurance scene for over
46 years, showed a post tax profit of nearly R180 million - up 32% from 2007.
In addition, the company has reaffirmed its AAA credit ratings - the highest
local rating awarded to companies.
"For AIG in South Africa, it remains business as usual," said the President
and Chief Executive Officer of AIG Africa, Peter Flint. "We are in a very strong
financial position and continue to pay claims and underwrite new business. AIG
Inc.'s challenges in the United States are localized and despite headline
attention are not impacting our operations here."
Flint continued: "We remain tightly regulated and we are required by local
law to maintain specific levels of solvency in order to maintain trading
licenses."
AIG Inc. may not access AIG SA's assets and capital, which is protected by
South African insurance regulators.
As AIG Inc. struggles to re-structure itself in a bid to protect and enhance
its key businesses, the company announced its attention to form AIU - a General
Insurance Holding Company - that will incorporate many of its foreign operations
including AIG Life South Africa and AIG South Africa.
The new AIU will have its own distinct brand and board of directors, and will
operate separately from AIG Inc.
Email
Print
