AIG SCRAPS PHILIPPINE SALE PLAN

AIG’s planned sale of American International Assurance (AIA) has been put on hold. Meanwhile, AIG has scrapped a planned sale of its Philippines insurance operation, Philippine American Life & General Insurance Co, deciding instead to include the company within the structure of AIA. The Philippines company said today that “it was appropriate at this time to include the Philippine American Life & General Insurance Co in the new AIA structure as the rest of AIA is being separated from AIG and positioned as an independent operation”. AIG has confirmed to its employees that plans to sell American Life Insurance Co (Alico) have been suspended. AIG is now thought to be planning to take the company public, possibly by 2010.