Posted on Apr 29, 2010 by Sergio Ulloa
Member of the American International Group (AIG)
, American Life and General Insurance Company (ALGICO)
will no longer underwrite new casualty and property insurance policies in Trinidad and Tobago as of May 1, 2010.
The decision to stop issuing new policies comes as a result of AIG subsidiary ALICO's sale to MetLife
, which is part of AIG's global restructuring plan to pay back the American government for the US$ 182 billion bailout in 2008. Alico
is the majority stakeholder in American General and Life Insurance Company and in light of the impending sale to MetLife
, AIG, Alico and ALGICO deliberated over the fate of ALGICO's property and casualty insurance business, finally coming to the decision to no longer underwrite policies.
ALGICO says that all policies already in force are perfectly safe and says that claims will continue to be processed in the usual manner. ALGICO has informed the Central Bank of Trinidad and Tobago, as well as the Banking, Insurance and General Workers Union (BIGWU) of the change, and is in the middle of notifying policyholders, brokers, agents and shareholders of the decision. As a result of the decision, an unknown number of employees are to be laid off from ALGICO, which is in contact with BIGWU in order to organize appropriate severance packages for their outgoing employees.
ALGICO will continue its other lines of business, including writing and renewing life, accident, annuities and health insurance for individuals as well as group health, life and pension plans. As part of the integration of Alico into MetLife, ALGICO is planning to increase the number of life insurance products it offers and broaden its distribution channels in an effort to concentrate on life and retirement products where MetLife is an industry leader.
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris and Tokyo.
Alico provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With products to support every aspect of their customers' lives, and provide comprehensive cover for the employees and commercial needs of their business clients.
American Life and General Insurance Company (Trinidad and Tobago) Limited was incorporated in Trinidad and Tobago in 1977 to assume combined control of Alico's local life insurance portfolio as well as American International Underwriters' general insurance business. The company is a member of the American International Group and has an asset base of US$ 1 billion.
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.