HOT OFF THE WIRES: AIG decides not to sell Philam after all

I don't have a Philam policy (insurance, pre-need or mutual fund) pero kung di sila ibebenta - parang ayaw ko lalo bumili ng product nila. I mean, how can I trust AIG considering what happend to them recently?

My husband has a Philam life insurance. I have a Philam-managed mutual fund. This really makes me apprehensive. Also, I could imagine that his policy would have some significant changes. I have to admit when we put his policy next to mine that mine pales very much in comparison. I guess it'll not be for long.

Accdg to FT, the sale was due to lack of huge buyers and hence AIG didnt want to sell for less that what it estimated initially.

With AIGs almost US100BN loss, I think it is best for them to sell before they are completely broken. But then again, the US govt will keep AIG afloat as millions of Americans depend on it. Hmmm--we'll just wait and see...

i do have one!

hopefully, it's a good news. If despite of what had happen to the mother AIG, PHILAM is still considered on of the best in Philippine Insurance industry then .... it must be real!

anyways, there's Insurance Commission to oversee anyway!

God bless PHILAM Life!!!!

parang mas nakakatakot ito kasi di stable ang AIG sa U.S. Nyay!

Doubt it. AIG needs cash more than ever. Especially with enormous Q4 loss of $60B. US govt loan to them was a losing bet as it turns out. Tsk tsk.

That is right. I am connected with AIG myself but I think It would be nice to have PhilAmLife manage by a Filipino company and call it SanMigLife. People dont want to have any more money business with AIG so PhilAm sales people do not rejoice.

I'm an ex-Philamlifer and still have high regards for the company. Personally, I'm glad, its sale won't push through. I would rather that it continue its operation in its own image and name, which is a proof of its success by Filipinos. This is like a child (Philamlife) saying to its mom (AIG), "Look mom, I've done very well!" - so why give up such child?

Philamlife continues to be number one even in this most challenging time. Any owner would want to keep its business number one at all times. So i'm not worried that AIG or the would-have-been new owner will scale down policyholders' benefits by, for example, reducing dividends originally meant for policyholders, or repatriating earnings at more than the usual level.

Philam Life is owned by AIG. AIG is already a zombie institution. It keeps on asking billions of $ from the Fed for its losses. If the Fed decides not to support AIG, then it will have to file for bankruptcy. My wife was a previous plan holder at Philam. When I went to their office in U.N, They had a tarpaulin banner saying the Fed have confidence in AIG because they gave them a $80B loan. What b.s.! Without that "loan", they should be bankrupt already.

Hi Salve,

I am also curious as to whether AIG will pressure its companies to repatriate every last bit of earnings to repay its BILLION dollar loans. After all (accdg to the agreements), the only way for AIG execs to once again enjoy their million dollar bonuses is if they are able to repay the U.S. government the full amount plus interest.

I think another follow-up question should be asked though : If AIG decides to institute policies that would be detrimental to the Filipino consumer, will Philam obey or will they protect the interests of their clients? (Keep in mind that as owner, AIG has great influence in determining the composition and compensation of management.)

It was quite shocked because AIG recently declared the largest corporate loss in US history amounting to US$62 Billion.

I really don't know how can they pay the US government for the bail out that they were given to them. I read that they were given fresh funds from the bail out plan to stay afloat.

On the contrary, this is good news for the current employees of Philam.

I'd say, this is bad for Philam.

What is the first question you ask to an insurance agent? [How much is the premium?] Ok ok, the next one then? [Hehe, who insures my insurance?].

Future policy buyers would be reluctant given that the owner almost went under in a crisis where we don't have a solid resolution yet [Yes, those bailouts are exactly what they are called, they just bail you out, but you still have a crime to face] and might last for another 36-months [according to Dr. Doom, google it]

What would stop AIG being the owner in diverting Philam profits to repay the US government instead of paying dividends?

AIG is thinking of themselves only, holding on to their ASSETs so tight, they are literally bringing them down with them. [United we stand, UNITED we fall]

i have a theory..... they are literally applying the " too big to fail" principle

if they divvy up their units.... they may not be too big... then possible to let them fail.....

by holding on to whatever is left earning.... there's some bargaining power left