I REFER to Mr Philip Khoo's letter last Saturday, 'Are we assured HDB apartments are fully covered?'
We thank Mr Khoo for his concern. We understand there may be some confusion among the public following the current financial turmoil in the United States and the situation facing our parent company, American International Group (AIG), in the US.
We would like to reassure all our customers that the financial issues of the parent company have no impact on its insurance companies' ability to pay claims and underwrite new policies. AIG's insurance companies remain strong and well-capitalised, and are strictly regulated by the authorities in each country.
In Singapore, the American Home Assurance Company Singapore (AHAC Singapore) has been appointed by the HDB via open tenders to underwrite HDB fire insurance since 1997. As with all insurance companies here, we are subject to stringent regulatory and capital requirements by the Monetary Authority of Singapore (MAS) and we more than meet these.
These regulations stipulate that insurers must maintain sufficient assets to meet all our liabilities to policyholders. These assets and funds are ring-fenced, kept separate from the parent company and fully protected - they cannot be touched or drawn on to offset any needs of the parent business in the US.
Some other key facts:
Our operations in Singapore remain in strong financial condition, with Standard & Poor rating of A+;
Our capital adequacy ratio is approximately 50 points above the requirements set by the MAS, and is believed to be the best in the market;
AHAC Singapore continues to maintain strong liquidity with over $100 million in cash and constantly generates positive cash flow; and
We hold over $650 million in assets as of Aug 31 this year - all in Singapore.
In short, your policies are safe, and you are protected.
Our business in Singapore continues to be healthy and we are confident that AHAC Singapore will continue to serve customers for many more years with the same excellent quality of service and value. We remain firmly committed to all our customers and wholeheartedly appreciate their support.
For more information on AIG and AHAC Singapore, visit our website at www.aiggeneral.com.sg.
Kevin Goulding
President
American Home Assurance Company Singapore
This article was first published in The Straits Times on October 01, 2008.
