AIG South Africa not affected by U.S. loss

2008-11-11 00:00

Johannesburg — Despite the announcement this week by American International Group Inc. (AIG) of a massive third-quarter loss of $24,47 billion, the group’s separately capitalised American International Underwriters (AIU), which includes AIG South Africa Limited and AIG Life South Africa Limited (AIG South Africa Companies), continue to be highly profitable and are operating as normal.

AIG SA Limited and AIG Life SA Ltd combined posted a profit for the third quarter of R63,7 million — up 63% from the corresponding third quarter of 2007 — and a profit for the year to date of R197,2 million — up 39% from 2007.

The United States government this week provided new financial assistance to the troubled insurance giant, and poured $40 billion into the company in return for partial ownership.

In total, the aid to the company now sits at around $150 billion.

“For AIG in SA, it’s business as usual; we are in a very strong financial position and continue to pay claims and underwrite new business. AIG Inc’s challenges in the U.S. are localised and are not impacting our operations here,” said Wayne Abraham, chief operating officer of AIG SA Companies.

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