I hope the club has a Plan B.
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AIG Life Australia can meet obligations
September 16, 2008 - 7:43PM
AIG Life, the Australian subsidiary of the world's biggest insurer American International Group Inc, says it has the capital and reserves to meet obligations to policyholders despite the troubles at its parent.
"I want to assure customers and business partners that AIG Life in Australia operates as a completely separate legal entity within the stringent Australian regulatory regime," AIG Life managing director Stuart Harrison said in a statement.
"We continue to comply with regulations concerning capital adequacy and solvency."
AIG has been battered over the past year by billions of dollars of losses tied to deterioration in the mortgage and credit markets.
On Monday its shares fell $US7.38, or 60.8 percent, to close at $US4.76 in New York.
The insurer has also been hit by a wave of downgrades by credit-rating agencies worried that the deteriorating housing market is further undermining the company's battered finances.
http://news.smh.com.au/business/aig-life-australia-can-meet-obligations-20080916-4hty.html