
Apr
29
ALGICO ceases underwriting new casualty and property policies
Posted on Apr 29, 2010 by Sergio Ulloa (G+)
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. Companies Mentioned: AIG


