Monday, October 13, 2008 Insurance firm set to release sale procedure By Carlo P. Mallo
PRE-need insurance giant Philippine American Life and General Insurance Company (Philamlife) is set to release the procedure in the sale of the multi-billion company from its mother company American International Group (AIG) within this week after a meeting with the federal appointed international banking institutions.
"We will be meeting with the international banking institutions like JP Morgan Chase and Blackstone Group to discuss with them the matter of the sale by next week," Jose Cuisia, Philamlife president and chief executive officer, said in a press conference in Davao City on Friday.
The meeting, according to Cuisia, will set the manner on how the insurance company will be sold in order to generate revenues for the economically stricken AIG to pay off its debts to the Federal Reserve Bank of New York.
The Philamlife executive also said he also has no idea as to the matter of the sale of the country's leading insurance company with over P49.5 billion net worth as of December 2007.
Philamlife, though one of the most prized asset of AIG, has been put on the market alongside its affiliates having a reported consolidated stockholders equity of P49.5 billion as of December 31, 2007 and with consolidated assets amounting to P170 billion.
"We have yet to determine the purchase price, but if it is through bidding, then they will have to submit their bids," Cuisia said.
In a statement last week, AIG announced it will be refocusing the company on its core property and casualty insurance business to repay its loan from the Federal Reserve Bank of New York wherein it has availed of a credit facility amounting to over $61 billion or roughly P2.8 trillion.
"I don't know if it will be through bidding or what," Cuisia said. "I also don't know if it will be sold individually or the Philam Life and its subsidiaries will be sold as a whole."
