ttgapers.com

Trinidad and Tobago based insurance firm American Life and General Insurance Company (ALGICO), partly owned by American Insurance Group (AIG), is not in any risk due to the overwhelming credit crunch that the United States and most of the world is currently facing.

AIG announced in the US yesterday that it planned to sell business units to pay off a US$85 billion bailout loan from the US government.

The company was on the brink of failure last month after it became a victim of the financial credit crisis in the US.

One of these units is the worldwide operation of American Life Insurance Company (Alico), which owns part of Algico here along with local shareholders.

Algico assured policyholders yesterday that despite the sale of Alico, the local company remained "stable and strong".

"There is very little chance that Algico's policyholders will be negatively affected," Algico said.

"We continue to provide many of Trinidad and Tobago's best insurance products and services. Our policyholders remain fully protected."

The company said it was business as usual at Algico, adding it was safe because it was governed by local regulation and any sale had to be vetted by national authorities.

Algico said it was also well capitalised with investments in Government bonds and in Europe and was not affected by the credit crunch in the US.