AIG Life Australia, an Australian subsidiary of troubled US insurance company AIG, assured its customers yesterday it is well-capitalised, and that it was business as usual at the company.
The insurer made the statement after its parent company was downgraded by three ratings agencies on Monday. The agencies took the measures because they question AIG's ability to raise much-needed capital.
The downgrades make it even harder for the US insurer to raise funds, and could mean the end of the company.
However, AIG Life said it operates as a separate entity and is solvent.
"I want to assure customers and business partners that AIG Life in Australia operates as a completely separate legal entity within the stringent Australian regulatory regime," AIG Life managing director Stuart Harrison said.
"We continue to comply with regulations concerning capital adequacy and solvency. AIG Life in Australia has more than sufficient capital and reserves to meet our obligations to policyholders."
