Insurer's managing director issues statement
AIG UK has sought to quell brokers’ concerns about its financial stability.
In a statement from the insurers’ managing director, Lex Baugh, the company said:
“In the light of the extraordinary developments in the financial markets AIG Inc. announced overnight that it had secured financial support from the Federal Reserve Bank of New York to resolve liquidity constraints.
“AIG UK’s ability to pay claims and to protect companies and consumers in the UK and around the world is undiminished. AIG UK Limited is a stand alone UK regulated insurance company, separate from any other AIG Group legal entity. As a separate company AIG UK retains assets and capital to meet its UK policy obligations ensuring continued protection for its policyholders.”
It continued: “AIG UK Limited is regulated by the Financial Services Authority. It maintains capital in excess of £900 million which exceeds the regulatory requirement and complies with all applicable regulatory requirements
“AIG UK Limited maintains strong liquidity and generates significant positive cash flow. AIG UK’s financial strength ratings as at 16th September 2008 are A+ from S&P, A1 from Moody’s and AA- from Fitch (ratings “watch negative”).”
The statement concluded: “We are grateful to brokers and clients for their continued support and patience and we will continue to communicate developments as they arise.”
