JOSE Cuisia Jr., president and chief executive officer of Philippines American Life and General Insurance Company, assured that Philamlife is adequately capitalized and the interests of its clients and policyholders are protected by the company's financial strength.

Cuisia said Philamlife remains to be a stable and strongly capitalized organization.

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"The policy owners and clients can be assured that their interests are protected because of the company's financial strength. A change of ownership will not in any way diminish policy owners' benefits and security. We will remain focused on the daily execution of our business and continue to provide our policy owners and clients with the highest level of service. We will continue to write new business and remain committed to meeting costumers' needs," he said in Sunday's press conference at the Business Inn.

He said Philamlife "is a strong business with a solid future. It is well capitalized with the strongest balance sheet in the life insurance industry."

Cuisia said that according to Insurance Commissioner Eduardo Malinis, Philamlife remains to be the largest insurance company in the Philippines with the strongest balance sheet in the industry. With its vast resources, Philamlife is capable of meeting its commitments and obligations to its clients.

Following the current financial issues facing the American International Group Inc. (AIG), the mother company of Philippine American Life and General Insurance Company, the Insurance Commission affirmed the stability and strength of Philamlife.

Philamlife's investments are concentrated in marketable Philippine government securities, corporate bonds, and the blue chip equities.

Cuisia reassured that "Philamlife is strong and well capitalized with a net worth of P49.5 billion (as of December 31, 2007) and with over P170 billion in assets. In 2007, revenues amounted to P36.7 billion reflecting a 14 percent growth while new business from life insurance operations of P7.4 billion was higher by 57.6 percent versus the previous year. Benefits payments totaled P6.6 billion, which is more than sufficient to secure your family's future."

The financial issues pertaining to the parent company, AIG, do not affect Philamlife's ability to pay claims and underwrite new policies, he added.

As required by Philippines regulations, the bulk of Philam's investments are in marketable Philippine government securities, prime local corporate bonds, and a small percentage in blue chip stocks. This ensures that the policies are safe and fully backed by the financial strength of Philamlife.

He said that AIG would refocus the company on its property and insurance business to repay its loan from the Federal Reserve Bank of New York. AIG's intention is to sell a range of companies and assets. The Philippine American Life Insurance Company has been identified for possible divestment along with some of Philamlife's affiliates.

He said AIG is seeking "top-rated, financially strong brand names with the capability of continuing Philamlife's legacy of leadership, strength stability, and dedication to its policyholders, employees, agents, partners, shareholders, and other stakeholders."

"AIG's decision is not a reflection of their subsidiaries' business or historical performance. AIG's subsidiaries in the Philippines remain financially strong and comply with local regulatory capital requirements," Cuisia stressed.

He said Philamlife "is the crown jewel of AIG and has built excellent brand equity being the only financial institution in the country with the distinction of five platinum trusted brands awards. This makes Philamlife a very attractive company."

"We will focus on the daily execution of our business and continue to provide our costumers and distributors with the highest level of service. Please be assured that we will continue to work with the regulatory authorities to ensure that the divested assets will remain financially sound. We will continue to write new business and remain committed to meeting customers' needs," Cuisia iterated. (Merlinda Pedrosa)

For more Philippine news, visit Sun.Star Manila.

(October 27, 2008 issue)
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