AIG rating cut not to affect Alico

Riyadh: 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 parent company American International Group (AIG).

"AIG is confident that it will surmount the current problems and issues," said a company spokesman in Alico's Saudi headquarters in Jeddah. "We have received a memo from our Measa [Middle East, Africa and South Asia] headquarters in Dubai that there was nothing to worry about," the Alico spokesman said.

Alico operates in 15 countries, offering a 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 the Saudi Gazette.

Imad Hussaini, Managing Director of Saudi Brokers, said: "Alico has tied up investments with Saudi British Bank and is registered with the Saudi Arabian Monetary Authority, which requires a guarantee of at least 100 million riyals."