AIG Malaysia CEO’s Message
3 March 2009
Dear Valued Business Partner
You will have seen or read the news that American International Group Inc, [‘AIG’] our ultimate parent company announced its results yesterday evening, Malaysian time. Part of the announcement included details of the Group’s restructuring plan. These were a broad set of actions taken in cooperation with the US Department of the Treasury and the Federal Reserve to improve AIG’s capital structure, to protect and enhance the value of its key businesses, which includes AIG General Insurance (Malaysia) Berhad.
AIG also announced that it is to form AIU Holdings Inc, a global Property Casualty Holding Company for its general insurance businesses. The creation of AIU Holdings, Inc. is a powerful step forward for AIG General insurance (Malaysia) Berhad and provides our business with stability and a definitive long term direction. It is a positive move towards protecting and enhancing the value of the key businesses that now comprise AIU Holdings and positions us for the future as more independently run, transparent companies.
AIG General Insurance (Malaysia) Berhad is currently part of AIU, an operating division of AIG, which includes all the non-US general insurance operations. As part of AIU Holdings, AIG General Insurance (Malaysia) Berhad will be part of a well-capitalised business that won’t be reliant on our parent, AIG’s agreement with the US government to support its financial strength. It will have its own board of directors, management team and a brand distinct from AIG. When formed, AIU Holdings Inc will be a unique leading franchise with more than 44,000 employees and 500 products and services serving 40 million commercial and individual customers in 130 countries and jurisdictions.
In 2008, AIU’s net premiums written grew by 10.3% to US$14.4 billion. It achieved an underwriting profit of US$1.0 billion with a combined ratio of 92.5%. AIU is well capitalised with over US$5 billion in cash and short term investments available as of 31 December 2008. Additionally, it paid over US$7.5 billion in claims from January to November 2008. AIG General Insurance (Malaysia) Berhad made its own positive contribution to this performance. We believe that these are exceptional results during difficult financial times.
As a locally incorporated company here in Malaysia, with its own capital and resources, we are subject to the rules, regulation and oversight of Bank Negara Malaysia. Policyholders are protected and their policies are safe. AIG’s underlying insurance businesses remain strong, well-capitalised and competitive – and that includes us here!
Ensuring you of our best attention now and in the future.
Thank you once more for your continued support.
Terima kasih.
Yang Benar,
AIG GENERAL INSURANCE (MALAYSIA) BERHAD
ROB RYAN
KETUA PEGAWAI EKSEKUTIF