Headlines:
| JA AIG subsidiary solvent |
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| Friday, 19 September 2008 | |
 The Jamaican
subsidiary of United States
insurance giant American Insurance Group (AIG), American Home Assurance
Company, says it has not been directly affected by the problems facing the
firm.On Tuesday, the Federal Reserve granted AIG a USD$85 billion bailout after it encountered liquidity problems. American Home Assurance, which is based in New Kingston, has been operating in Jamaica for 40 years. The insurance company says it remains in a strong financial position and is regulated by the Financial Services Commission. Earl Golding, General Manager, told RJR's Financial Report that American Home Assurance is a branch of American Home Assurance of New York but operates as an independent entity. "What has happened to AIG, it is a situation where they found themselves in a situation where the liquidity was not sufficient to keep them going ... that is not the situation with any of the subsidiaries operating internationally in 140 jurisdictions," he said. According to Mr. Golding, all the subsidiaries operate independently and profits are generally repatriated to AIG's home office. "Consequently I wish to affirm to our partners, policy owners, brokers that we are definitely solvent ... there's no liquidity issues with the office in Jamaica," he said. |