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Alico remains confident despite AIG woes
American Life Insurance Company (Alico) has assured its clients and partners in Saudi Arabia and the Gulf region that it is not affected by the cut in the credit rating of its mother company American International Group Inc. (AIG).
- By Mariam Al Hakeem, Correspondent
- Published: 17:09 September 17, 2008
Riyadh, Saudi Arabia: American Life Insurance Company (Alico) has assured its clients and partners in Saudi Arabia and the Gulf region that it is not affected by the cut in the credit rating of its mother company American International Group Inc. (AIG).
"Our mother company, the American International Group Inc. (AIG), is confident that it will surmount the current problems and issues," a company spokesman in Alico's national headquarters in Jeddah said.
"We have received a memo from our MEASA (Middle East, Africa and South Asia) headquarters in Dubai that there was nothing to worry," the Alico spokesman said. Alico operates in 15 countries in the Middle East, Africa and Southeast Asian regions.
Alico markets a wide range of life and health insurance protection, but the bulk of its clientele is in medical insurance, particularly in Saudi Arabia. "Our customers in Saudi Arabia are A-1 companies and we are assuring them of stability and liquidity to provide the coverage," an official in the medical insurance department of Alico told Saudi Gazette.
Imad Husseini, Managing Director of Saudi Brokers, an insurance and reinsurance brokerage firm, said Alico is financially solid to provide coverage to its thousands of clients in the region, mostly in Saudi Arabia.
"There is no need to fear, Alico and AIG are very powerful business organizations with no problem in money," Husseini said, who is also a member of the insurance advisory council at the Asharqia Chamber of Commerce and Industry in Eastern Province. "Alico has tiedup investment with the Saudi British Bank (SBB) and is already registered with the Saudi Arabian Monetary Authority (SAMA), which requires a guarantee of at least SR100 million. Alico could have put a guarantee of SR200 million," Husseini said.
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