http://www.asiaone.com/Business/News/Story/A1Story20080918-88475.html
do these policy holders really know watz happening....?????
do these policy holders really know watz happening....?????
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S'pore AIA policyholders largely relieved after US govt bailout!!!!
- Thread starter hungary fighter
- Start date
If I'm not wrong, the $85B is not a bailout, it's too little. It's for avoiding a catastrophic AIG bowl out. I would say it's prudent for AIA policy holders to play safe and retreat.
Does AIA Singapore and others have 1 trillion liquidity !
When one day inevitable unemployment comes again in second and third wave !
50% of AIA clients bailout alone !
Final stab of the company with another 25% bailouts !
The top heavy assurance companies can start emptying copier papers !
Start looking at the classified !
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the USD 85B is a loan from the fed to help AIG float. Which means, AIG is now in USD 85B debts.
And another 19bil in interest if it decides to draw down the credit line. They still have to reslove the issues.. and like I mentioned at the other thread they may be more writedowns if more banking instutitions go belly up.
Wise move. An insurance company (AIA) is different from an investment bank (Lehman) let alone it is a subsidairy in another country. An insurance company subsidiary in another country is regulated by tough insurance laws by the local regulators like commercial banks and their assets are separated from the holding company. In my opinion, an investment bank is NOT a bank. They borrow from capital markets to fund their investments. It is just serving high net worth clients and doing investments. The whole biz model is flawed. They have no mass market deposits for one to start off. Insurance subsidiaries are different. They can survive even if the holding co is liquidated. It happened before in the past. Read article below.
According to latest news, the subsidiaries in India, Thailand , Japan, etc are healthy and no rush by policies holders to cash out except Sinkapor.
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Quote from CNN,
On Tuesday night, the federal government announced an $85 billion rescue of the company.
Despite the company's importance, the average citizen is probably not sure how, or why, its problems will affect them.
Here are two key questions and answers about AIG's current woes and what they mean to you.
I have insurance through AIG. How worried should I be about the problems at the company?
At least in the short term, you probably don't need to be worried at all. The problems are with the AIG holding company, not the individual insurance company subsidiaries that you do business with, according to a source from the State's insurance regulator.
Even if AIG's holding company is forced to file for bankruptcy court protection, there's a good chance that the subsidiaries will continue to operate normally with no disruption in claims payments. That has happened in the case of other insurance holding companies' bankruptcies in the past, such as Conseco (CNO).
What guarantees that my claims will be paid?
Typically, if an insurance company falls into financial distress and is at risk of having claims that exceed the assets it holds to make those payments, the insurance regulator in its home state will take control of the firm and make payments.
The state regulator will not only use the firm's own assets to make those payments but, if necessary, can also make payments out of a fund into which all insurers in the state are required to pay.
This guarantee applies not just to traditional insurance policies but also to retirement products that have a promised payout, such as annuities.
Must be careful not to trust SPH propaganda. They are protecting the interests of gov't & big business.
Small fry citizens are on their own. Can't really blame them for panicking & queuing up to withdraw, as our gov't got a track record of playing out the citizens e.g. remember CLOB
Must be careful not to trust SPH propaganda. They are protecting the interests of gov't & big business.
Small fry citizens are on their own. Can't really blame them for panicking & queuing up to withdraw, as our gov't got a track record of playing out the citizens e.g. remember CLOB
Panic selling out would only worsen the situation as it would manifest the people's fears. Proper information needs to be disseminated for the people to make an informed decision.
Wow. Look at the chinks in the queue. I thought MAS and AIA have already clarified? Perhaps these chinks have overstretched themselves and are looking for the first excuse to bail out the agreement for much needed cash. Nevermind the losses.
You believe
Cash out then. Simple.
Yes many, many, many... are cashing out lah.
Shows how credible the assurances from the "authorities" are.
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