AIG woes won't affect us - Alico |
|
DAMMAM - American Life Insurance Company (Alico) has assured its clients and partners in Saudi Arabia and the Gulf region that it is not affected by the cut in the credit rating of its mother company American International Group Inc. (AIG).
"Our mother company, the American International Group Inc. (AIG), is confident that it will surmount the current problems and issues," a company spokesman in Alico's national headquarters in Jeddah said.
"We have received a memo from our MEASA (Middle East, Africa and South Asia) headquarters in Dubai that there was nothing to worry," the Alico spokesman said. Alico operates in 15 countries in the Middle East, Africa and Southeast Asian regions.
Alico markets wide range of life and health insurance protection, but the bulk of its clientele is in medical insurance, particularly in Saudi Arabia. "Our customers in Saudi Arabia are A-1 companies and we are assuring them of stability and liquidity to provide the coverage," an official in the medical insurance department of Alico told Saudi Gazette.
Imad Husseini, Managing Director of Saudi Brokers, an insurance and reinsurance brokerage firm, said Alico is financially solid to provide coverage to its thousands of clients in the region, mostly in Saudi Arabia.
"There is no need to fear, Alico and AIG are very powerful business organizations with no problem in money," Husseini said, who is also a member of the insurance advisory council at the Asharqia Chamber of Commerce and Industry in Eastern Province. "Alico has tied-up investment with the Saudi British Bank (SBB)Saudi British Bank (SBB)
and is already registered with the Saudi Arabian Monetary Authority (SAMA), which requires a guarantee of at least SR100 million. Alico could have put a guarantee of SR200 million," Husseini said.AIG's credit rating has been cut by Standard & Poor's and Moody's Investors Service, threatening effort to raise funds to keep the company afloat and ward off the current crises in global financial markets.
AIG rating cuts may trigger more than $13 billion in collateral calls from debt investors who bought swaps. AIG is seeking $70 billion to $75 billion in loans to replenish capital and stay financially liquid and stable to provide insurance coverage.
AIG has reported a net loss of $5.36 billion or $2.06 per diluted share during the second quarter of 2008, compared to 2007 second quarter net income of $4.28 billion or $1.64 per share. A press statement from AIG stated that the continuation of the weak US housing market and disruption in the credit markets, as well as global equity market volatility, had substantially and adversely affected the company.
By Joe Avancena
© The Saudi Gazette 2008
Zawya Comment Policy:
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Community Buzz
Stories
Companies
Most viewed companies by Community in the last 24 hrs
| Company Name | Country | Industry |
| Consolidated Contractors Company | Overseas | Construction and Design |
| Saudi Binladin Group | Saudi Arabia | Construction and Design |
| Emirates Aluminium Company | UAE | Metal Production |
| Emirates Telecommunications Corporation | UAE | Telecommunications Services |
| Al Azizia Panda United Company | Saudi Arabia | General Retailers |
| Ras Girtas Power Company | Qatar | Electric Utilities |
| Abu Dhabi Investment Council | UAE | Investment Firms and Funds |
| Saudi Electricity Company | Saudi Arabia | Electric Utilities |
| Abu Dhabi Investment Company | UAE | Investment Banking |
| Barwa Real Estate Company | Qatar | Landlords and Developers |
Projects
Most viewed projects by Community in the last 24 hrs
| Project Name | Country | Sector |
| Ras Girtas Power Company - Ras Girtas IWPP | Qatar | Power and Water |
| IGD - Gasco - Habshan 5 Gas Processing Plant | UAE | Oil and Gas |
| Emirates Aluminium (EMAL) - Smelter Complex | UAE | Industry |
| SATORP - Jubail Refinery and Petrochemical Complex | Saudi Arabia | Oil and Gas |
| Takreer - Ruwais Refinery Expansion | UAE | Oil and Gas |
| Qatar Foundation - Sidra Medical and Research Center | Qatar | Real Estate |
| Aramco/Dow Chemical - Ras Tanura Integrated Refinery and Petrochemicals Complex | Saudi Arabia | Oil and Gas |
| SATORP- Jubail Refinery and Petrochemical Complex - Conversion Unit and Sulphur Package (Part 2) | Saudi Arabia | Oil and Gas |
| Abu Dhabi Ports Company - Khalifa Port and Industrial Zone (KPIZ) | UAE | Infrastructure |
| Dubai RTA - Dubai Metro - Purple Line | UAE | Infrastructure |





Loading ...
alico is financially sound and solid.
no need to fear. [Report Abuse | Email to a Friend | Reply to this Comment]
I like your Comment, Can you tell us what bad experiences you had with them ?!! [Report Abuse | Email to a Friend | Reply to this Comment]
Go for ALLIANZ, it is the BEST, AIG and ALICO are the biggest cheaters around.. their agents have fooled many customers including me. and now that thy are financially unstable, how the hell everyone around is gonna buy an insurance policy form them
I guess Alico AIG should have had an insurance policy for themselves.. [Report Abuse | Email to a Friend | Reply to this Comment]
As USA based ALICO customer, I still feel that ALICO finance protection is good and need not to worry.
Real worry for ALICO customers is ethics and to tell in New York Attorney General Andrew Cuomo way " type of deceptive behavior " by ALICO.
I can inform you that in ALICO life policy you will certainly NOT get money from ALICO the way it was told, informed and given even in writing by ALICO.
I even can sense that AIG case would be used to deny to pay you. ALICO Gulf will use false papers to prove that you are wrong (As ALICO Gulf does not states full all pre-sale conditions in life insurance policy).
Lot of deceptive behavior by ALICO Gulf are pending with ALICO Gulf, so be careful and let AIG case should not be used to divert your life insurance policy.
Thanks,
Vikrant Bindal
California, USA [Report Abuse | Email to a Friend | Reply to this Comment]