INSURER AIA yesterday continued to allay the concerns of edgy policyholders, reassuring them that its parent firm AIG will not reduce the capital of its subsidiaries or tap into Asian operations for cash.

The statement from AIG comes on top of news yesterday that the American insurer has received a US$85 billion (S$122 billion) loan from the US Federal Reserve that will effectively enable it to stave off bankruptcy.

Alpha Financial Advisers' chief executive Arthur Lim said that it brings some reprieve to a very bad situation and would buy the firm some time to get its house in order.And Mr Gary Harvey, chief executive officer of ipac Wealth Management Asia, urged customers who are thinking of surrendering their plans to ignore the noise in the marketplace.

For more The Straits Times stories, click here.