AIG Life Australia has re-affirmed its financial position as being well-capitalised, just days after the US Federal Reserve agreed to bailout its American life insurance parent, AIG.
"This is great news for our company globally, and will alleviate concerns that our business partners and customers have had regarding the issues facing our ultimate parent," AIG Life Australia managing director Stuart Harrison said.
"AIG can now focus on an orderly restructuring process while continuing to meet the needs of its policy holders.
"For us in Australia it is business as usual."
Echoing statements from the AIG Board, the US Federal Reserve action will enable AIG policy holders of AIG companies around the world to rest assured, as AIG's commitments will be honoured, Harrison said.
"In addition to the fact that AIG Life in Australia continues to meet all relevant regulatory requirements in terms of solvency and capital adequacy, this latest development should now lay to rest any concerns about our operation in Australia."
Details about the US Federal Reserve transaction will be made available over coming days and weeks, AIG Life Australia confirmed.
Earlier this week, the US Federal Reserve announced it will provide a $101 billion revolving credit facility over the next 24 months, to AIG.
