MOF asks AIG Vietnam to submit business report

The Insurance Management Agency, under the Ministry of Finance, has asked two AIG life and non-life insurance companies in Vietnam to present official reports about the information relating to the $60 billion loss incurred by their parent company in the US.

The agency said that after reading the news about the loss, it has asked AIG Vietnam to submit a business report, which the agency will consider thoroughly to help settle problems and set orientations for AIG’s operation in Vietnam.

An official from the agency said that the initial information provided by AIG Vietnam showed that both AIG life and non-life companies are operating normally.

“We are expecting further detailed reports from the companies, so that we can provide necessary information to press agencies at the soonest possible time,” he said.

Reuters has reported that the world’s leading finance service provider and insurance group AIG is negotiating with the US administration to get a further bailout after twice getting a capital injection in 2008. A source said that AIG may incur the loss of up to $60 billion in the fourth quarter of the 2008 fiscal year (which will end in March 2009).

AIG Vietnam’s representative told local newspaper VnExpress that this is unofficial information, while the companies have not received any information from the AIG group from the US. AIG has not released a report on business results for the fourth quarter of 2008 and the whole 2008 year. The group in the US is cooperating with the Federal Reserve Bank of New York to consider effective measures to help settle AIG’s financial difficulties. The group will release necessary information when submitting a business report in the time to come.

The US-based AIG group has two subsidiaries in Vietnam, 100% foreign-owned, life and non-life insurance companies. AIG Life Insurance began its operation in Vietnam in 1999, which now has the chartered capital of VND920 billion. Meanwhile, AIG Non-life Insurance Company kicked off its operation in December 2005 with the chartered capital of VND320 billion.

VietNamNet, VNE

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