Thailand-based AIA Says Its Financial Position Remains Strong

[george]

Thailand-based AIA says its financial position remains strong

BANGKOK: -- American International Assurance (AIA) Thailand said Wednesday although its parent company in the United States, American Insurance Group (AIG), is facing a financial crunch, the AIA office in the kingdom still enjoys strong financial position, according to Thomas James White, AIA Thailand's executive vice president and general manager.

US financial institutions and government agencies have already extended loans amounting to US$85 billion with an aim to boost liquidity of AIG, the US parent of AIA, Mr. White indicated.

AIA in Thailand is a subsidiary of AIA in Hong Kong and has been in business 70 years, he said. Currently, there are more than 4.8 million policyholders in Thailand and if the number of policy holders on accident and health is added then the grand total of policyholders would be over 5.8 million.

Business growth of the company here is over 10 per cent annually, he said, adding that his company would from Wednesday notify its client base by letter clarifying the real situation in order to create confidence among its customers.

Agents of AIA Thailand will also explain the situation to customers, said Mr. White. AIA Thailand has accumulated profits amounting over Bt79 billion, 10 times more than requirements specified by Thailand's Office of Insurance Commission (OIC). Its reserves are over Bt280 billion while its total assets exceed Bt380 billion, said Mr. White.

He said AIA Thailand sought permission from the OIC a long time ago to repatriate a total of Bt10 billion to the parent company with money amounting Bt1 billion would be sent monthly. The cash repatriation has nothing to do with boosting liquidity of the parent firm, Mr. White said.

-- TNA 2008-09-18

[george]

BoT asserts Thailand insulated from Lehman collapse, AIG liquidity crunch

BANGKOK: -- Amid troubles facing equity and financial markets worldwide in the wake of the collapse of US investment bank Lehman Brothers and a liquidity crunch faced by the American Insurance Group (AIG) in the United States, Bank of Thailand (BoT) governor Tarisa Watanagase on Wednesday calmed the public, saying that the problems would not pose a direct impact on Thai financial institutions.

According to Mrs. Tarisa, the US Federal Reserve has already provided loans amounting US$85 billion to AIG.

Exposure by Thai commercial banks in the Lehman Brothers debacle amounted to only Bt6.7 billion, a small

portion compared to their total lending of Bt7 trillion, which represents only 0.009 per cent of the total.

Liquidity in Thailand is still ample, she said, and there is no need for injecting more funds into the system. But, Mrs. Tarisa added, the Thai central bank will closely monitor the situation closely and is prepared to implement necessary measures to prevent the crisis from hurting local institutions.

Her data apparently contradicted that released by Nattapol Chavalitcheevin, president of the Thai Bond Market Association, who said Tuesday that Thai commercial banks are expected to suffer an estimated loss of Bt3 billion from total exposures of Bt4.3 billion in their investments with Lehman Brothers.

Mrs. Tarisa said the "BoT will monitor the situation and financial crisis in the US closely and (is) ready to inject funds to boost liquidity in the system locally if necessary" while she believes that the crisis will not produce a chain reaction worldwide.

Touching on debt instrument investments by Bangkok Bank, Thailand's largest, in Lehman Brothers -- investments valued at Bt3.5 billion, she said she is confident the bank could handle the problem and that their investment was not much compared to its assets.

-- TNA 2008-09-18

[astral]

BoT asserts Thailand insulated from Lehman collapse, AIG liquidity crunch

BANGKOK: -- Amid troubles facing equity and financial markets worldwide in the wake of the collapse of US investment bank Lehman Brothers and a liquidity crunch faced by the American Insurance Group (AIG) in the United States, Bank of Thailand (BoT) governor Tarisa Watanagase on Wednesday calmed the public, saying that the problems would not pose a direct impact on Thai financial institutions.

Forgive me for saying that sounds a little naive.

Does she really have clear picture of exactly how much money the Thai institutions

have invested in the US, and how they will be affected by Financial failures in the US?????

[WinnieTheKhwai]

Sounds remarkably similar to the guy who claimed that the Gulf of Thailand would not be affected by melting polar ice because it was too far away.

[younghusband]

BoT asserts Thailand insulated from Lehman collapse, AIG liquidity crunch

BANGKOK: -- Amid troubles facing equity and financial markets worldwide in the wake of the collapse of US investment bank Lehman Brothers and a liquidity crunch faced by the American Insurance Group (AIG) in the United States, Bank of Thailand (BoT) governor Tarisa Watanagase on Wednesday calmed the public, saying that the problems would not pose a direct impact on Thai financial institutions.

Forgive me for saying that sounds a little naive.

Does she really have clear picture of exactly how much money the Thai institutions

have invested in the US, and how they will be affected by Financial failures in the US?????

In a word yes she does.

[astral]

Just like Barings new exactly what Leeson was doing........................

[younghusband]

Just like Barings new exactly what Leeson was doing........................

No quite different situation.Barings London directors probably didn't understand deriviatives certainly, but equally Leeson took advantage of lax back office procedures.Thailand Central Bank to my certain knowledge since Baht crisis in late 1990's scrutinises local banks overseas exposure.So unless Thai banks have been falsifying their returns to the Central Bank Khun Tarisa is almost certainly correct in her assessment.

[wimster]

Nice, trying to protect their a**es

I still do not see an answer or explanation to this comment:

"Voravan Tarapoom, president of the Association of Investment Management Companies, warned that a collapse of AIG could potentially affect AIA, which in turn would have huge ramifications for the Thai economy and public.

''Under the Insurance Act, there is no explicit guarantee given for policyholders. Customers might believe that their funds are 100% safe, but they are not,'' she said.

Mrs Voravan, also managing director of BBL Asset Management, said authorities need to have a clear contingency plan in place in case an event affected AIG and AIA."

Until I get a clear answer from AIA on this, I think they have been lying all along, just like their US "sister".

[LaoPo]

BoT asserts Thailand insulated from Lehman collapse, AIG liquidity crunch

BANGKOK: -- Amid troubles facing equity and financial markets worldwide in the wake of the collapse of US investment bank Lehman Brothers and a liquidity crunch faced by the American Insurance Group (AIG) in the United States, Bank of Thailand (BoT) governor Tarisa Watanagase on Wednesday calmed the public, saying that the problems would not pose a direct impact on Thai financial institutions.

Forgive me for saying that sounds a little naive.

Does she really have clear picture of exactly how much money the Thai institutions

have invested in the US, and how they will be affected by Financial failures in the US?????

In a word yes she does.

No, she doesn't.

IF she would, she would be the SINGLE and ONLY Central Banker in the entire world, having a clear picture; now...that would be something, wouldn't it, especially in Thailand

If the CEO's of all the companies which went down the drain in the past few weeks alone didn't know about their own <deleted>, how come Mr. Tarisa would know how much money Thai Institutions have invested in the US ?

IF she knew...she has strict obligations and SHOULD have warned the country a long time ago.

She didn't and doesn't know.

But, she will know after the bankers invested the money and told her...a few months later.

AIA

I am much more worried about the assets AIA says they have.

5.8 MILLION Policy holders in Thailand alone....that's HUGE; if the average holder has a family of 3; and that's not too high I think, we're talking that it could affect more than 17 Million people....

In Singapore people were lining up yesterday to take their money back.

What about Thailand ? I didn't hear anything...?

LaoPo

[philstone]

BoT asserts Thailand insulated from Lehman collapse, AIG liquidity crunch

BANGKOK: -- Amid troubles facing equity and financial markets worldwide in the wake of the collapse of US investment bank Lehman Brothers and a liquidity crunch faced by the American Insurance Group (AIG) in the United States, Bank of Thailand (BoT) governor Tarisa Watanagase on Wednesday calmed the public, saying that the problems would not pose a direct impact on Thai financial institutions.

Forgive me for saying that sounds a little naive.

Does she really have clear picture of exactly how much money the Thai institutions

have invested in the US, and how they will be affected by Financial failures in the US?????

In a word yes she does.

No, she doesn't.

IF she would, she would be the SINGLE and ONLY Central Banker in the entire world, having a clear picture; now...that would be something, wouldn't it, especially in Thailand

If the CEO's of all the companies which went down the drain in the past few weeks alone didn't know about their own <deleted>, how come Mr. Tarisa would know how much money Thai Institutions have invested in the US ?

IF she knew...she has strict obligations and SHOULD have warned the country a long time ago.

She didn't and doesn't know.

But, she will know after the bankers invested the money and told her...a few months later.

AIA

I am much more worried about the assets AIA says they have.

5.8 MILLION Policy holders in Thailand alone....that's HUGE; if the average holder has a family of 3; and that's not too high I think, we're talking that it could affect more than 17 Million people....

In Singapore people were lining up yesterday to take their money back.

What about Thailand ? I didn't hear anything...?

LaoPo

This Thailand no need to worry unless you have money with them. How we for get up to you.

[Old Man River]

BoT asserts Thailand insulated from Lehman collapse, AIG liquidity crunch

BANGKOK: -- Amid troubles facing equity and financial markets worldwide in the wake of the collapse of US investment bank Lehman Brothers and a liquidity crunch faced by the American Insurance Group (AIG) in the United States, Bank of Thailand (BoT) governor Tarisa Watanagase on Wednesday calmed the public, saying that the problems would not pose a direct impact on Thai financial institutions.

Forgive me for saying that sounds a little naive.

Does she really have clear picture of exactly how much money the Thai institutions

have invested in the US, and how they will be affected by Financial failures in the US?????

In a word yes she does.

No, she doesn't.

Yes she does.

[hansnl]

Yes, well, I think maybe it is time to look for another insurance.

I definitely think this could be a very good idea.

In the meantime I stopped my auto debit with AIA.

Read very well, a huge chunk of money will be transferred to the US, plus yearly payments.

I would like to know what the US included into the 80+ billion loan?

Maybe extra money from Thailand and all the other "daughters"?

What does that mean for AIA Thailand?

Byebye AIA

If the CEO's of all the companies which went down the drain in the past few weeks alone didn't know about their own <deleted>, how come Mr. Tarisa would know how much money Thai Institutions have invested in the US ?

That just describes the very high quality of CEO's of companies that went down the drain.

In general, please don't be sorry for those suckers, of course they knew but did not tell, of course they have no problem because their money will still be safe, of course they don't give a f*cking d*mn about you loosing money.

Have a look how the whole balloon with fried air is bursting.

Edited September 19, 2008 by hansnl

[Old Man River]

If the CEO's of all the companies which went down the drain in the past few weeks alone didn't know about their own <deleted>, how come Mr. Tarisa would know how much money Thai Institutions have invested in the US ?

Actually, I think they did know. Who said they didn't?

As it relates to Thailand, we are talking about Thai financial institutions here only, not all Thai institutions. As it relates to those the BOT oversees, investments are reported to the BOT and are on a mark to market basis at each reporting date.

I am surprised that some think a central banker is obligated to scream the sky is falling in their respective countries. This is the exact opposite of what they should do.

[hammered]

Yes, well, I think maybe it is time to look for another insurance.

I definitely think this could be a very good idea.

In the meantime I stopped my auto debit with AIA.

Read very well, a huge chunk of money will be transferred to the US, plus yearly payments.

I would like to know what the US included into the 80+ billion loan?

Maybe extra money from Thailand and all the other "daughters"?

What does that mean for AIA Thailand?

Byebye AIA

If the CEO's of all the companies which went down the drain in the past few weeks alone didn't know about their own <deleted>, how come Mr. Tarisa would know how much money Thai Institutions have invested in the US ?

That just describes the very high quality of CEO's of companies that went down the drain.

In general, please don't be sorry for those suckers, of course they knew but did not tell, of course they have no problem because their money will still be safe, of course they don't give a f*cking d*mn about you loosing money.

Have a look how the whole balloon with fried air is bursting.

Khun Tarisa is a woman

[Crushdepth]

You'd have to be an idiot to trust 'reassurances' from financial companies at risk of collapse. My workplace forced its employees to put their provident fund in AIA (no choice). Nevermind the current situation, its performance has been unequivocally crap over the last five years. We are putting it to the management that maybe we want to be able to make our own retirement fund arrangements.

[astral]

Until I get a clear answer from AIA on this, I think they have been lying all along, just like their US "sister".

A friend has money invested with a Middle East branch of the company.

The answer he received was that the locals funds are invested in the local markets

and European investments. Which suggest to me that each country is setup

and managed separately, to prevent knock on effects in situations like this.

[soundman]

Irrespective of whether the BOT does or doesn't know about the financial position & obligations / liabilities of AIA Thailand, would it be prudent to close out policies with AIA Thailand at this point in time or does the AIG problem have no bearing on the Thai company?

My folks have two policies with AIA, both about to mature in the next couple of years.

Anybody want to make a call on that?

Cheers,

Soundman.

[animatic]

BoT asserts Thailand insulated from Lehman collapse, AIG liquidity crunch

BANGKOK: -- Amid troubles facing equity and financial markets worldwide in the wake of the collapse of US investment bank Lehman Brothers and a liquidity crunch faced by the American Insurance Group (AIG) in the United States, Bank of Thailand (BoT) governor Tarisa Watanagase on Wednesday calmed the public, saying that the problems would not pose a direct impact on Thai financial institutions.

Forgive me for saying that sounds a little naive.

Does she really have clear picture of exactly how much money the Thai institutions

have invested in the US, and how they will be affected by Financial failures in the US?????

In a word yes she does.

No, she doesn't.

IF she would, she would be the SINGLE and ONLY Central Banker in the entire world, having a clear picture; now...that would be something, wouldn't it, especially in Thailand

If the CEO's of all the companies which went down the drain in the past few weeks alone didn't know about their own <deleted>, how come Mr. Tarisa would know how much money Thai Institutions have invested in the US ?

IF she knew...she has strict obligations and SHOULD have warned the country a long time ago.

She didn't and doesn't know.

But, she will know after the bankers invested the money and told her...a few months later.

AIA

I am much more worried about the assets AIA says they have.

5.8 MILLION Policy holders in Thailand alone....that's HUGE; if the average holder has a family of 3; and that's not too high I think, we're talking that it could affect more than 17 Million people....

In Singapore people were lining up yesterday to take their money back.

What about Thailand ? I didn't hear anything...?

LaoPo

For ONCE Laopo and I agree.

P. Tharisa may have a guess based on last years REPORTED taxes

and on currency flows to USA from ON-Shore Thai accounts,

but a clear picture of Thai corporate risk vis a vis the USA market

is most likely not even close to accurate. She's the government,

the big players don't tell the government their business unless forced

or they OWN the government it and know already... (insert pained laughter)

She has a notably poor track record of seeing the big picture BEFORE it turns abruptly

Then making a over-reaction and scaring business.

Save face till the last instant then blunder about for a week.

And absolutely no Alan Greenspan subtlety at working the markets, if anything

the complete inverse of him. Her mouth opens and the market shudders, THEN settles.

She has the rep of a reactionary smoothing the waters after the fish darted past the net.

Edited September 21, 2008 by animatic

[LaoPo]

For ONCE Laopo and I agree.

we have more in common than you think. I, for one, love Samui too, already since I set foot on the island some 18 years ago for the first time...

LaoPo

[Thaising]

Not only policyholders are feeling unsecured on their insured funds with AIA, million of AIA insurance brokers and agents in Asia regions are going to faces hard time selling AIA policies for next ?????.

[hansnl]

Yes, well, I think maybe it is time to look for another insurance.

I definitely think this could be a very good idea.

In the meantime I stopped my auto debit with AIA.

Read very well, a huge chunk of money will be transferred to the US, plus yearly payments.

I would like to know what the US included into the 80+ billion loan?

Maybe extra money from Thailand and all the other "daughters"?

What does that mean for AIA Thailand?

Byebye AIA

If the CEO's of all the companies which went down the drain in the past few weeks alone didn't know about their own <deleted>, how come Mr. Tarisa would know how much money Thai Institutions have invested in the US ?

That just describes the very high quality of CEO's of companies that went down the drain.

In general, please don't be sorry for those suckers, of course they knew but did not tell, of course they have no problem because their money will still be safe, of course they don't give a f*cking d*mn about you loosing money.

Have a look how the whole balloon with fried air is bursting.

Khun Tarisa is a woman

Really?

Now that gem of wisdom is most certainly HIGHLY important.

All I jotted down is sexe-equivalent.

So please read for Mr Tarisa, Mrs Tarisa.

Thank you very much.

[Old Man River]

BoT asserts Thailand insulated from Lehman collapse, AIG liquidity crunch

BANGKOK: -- Amid troubles facing equity and financial markets worldwide in the wake of the collapse of US investment bank Lehman Brothers and a liquidity crunch faced by the American Insurance Group (AIG) in the United States, Bank of Thailand (BoT) governor Tarisa Watanagase on Wednesday calmed the public, saying that the problems would not pose a direct impact on Thai financial institutions.

Forgive me for saying that sounds a little naive.

Does she really have clear picture of exactly how much money the Thai institutions

have invested in the US, and how they will be affected by Financial failures in the US?????

In a word yes she does.

No, she doesn't.

IF she would, she would be the SINGLE and ONLY Central Banker in the entire world, having a clear picture; now...that would be something, wouldn't it, especially in Thailand

If the CEO's of all the companies which went down the drain in the past few weeks alone didn't know about their own <deleted>, how come Mr. Tarisa would know how much money Thai Institutions have invested in the US ?

IF she knew...she has strict obligations and SHOULD have warned the country a long time ago.

She didn't and doesn't know.

But, she will know after the bankers invested the money and told her...a few months later.

AIA

I am much more worried about the assets AIA says they have.

5.8 MILLION Policy holders in Thailand alone....that's HUGE; if the average holder has a family of 3; and that's not too high I think, we're talking that it could affect more than 17 Million people....

In Singapore people were lining up yesterday to take their money back.

What about Thailand ? I didn't hear anything...?

LaoPo

For ONCE Laopo and I agree.

P. Tharisa may have a guess based on last years REPORTED taxes

and on currency flows to USA from ON-Shore Thai accounts,

but a clear picture of Thai corporate risk vis a vis the USA market

is most likely not even close to accurate.

The comment from the BOT that is being discussed here is as follows:

"Bank of Thailand (BoT) governor Tarisa Watanagase on Wednesday calmed the public, saying that the problems would not pose a direct impact on Thai financial institutions."

She is discussing the impact on Thai financial institutions, not Thai corporates. Of course she would not have a clear picture of Thai corporate risk vis a vis the USA market as the BOT oversees Thai financial institutions only, not all Thai corporates. Actually, you are not the only one to be similarly confused as I see this all too often.

Just so you know, the BOT does have access to information on US risk to investment ports of Thai financial institutions as this information is reported to the BOT and is based on a mark to market at each reporting date.

One caveat on her comments about potential risk, central bank governors never openly admit to pending financial difficulties in a country's financial sector. In fact, in most western countries it is a criminal act to do this. This is why people who follow these things were shocked when former PM Samak publicly mentioned two Thai banks were having financial difficulties.

[Heng]

I don't think we'll be renewing anyway despite their assurances. Not a real big believer in 'isolated' cancers.

[AlKing]

Who needs bank and insurance. In my village, we have a basic system to keep our dosh and gold.

Saving account: Cash under the pillow

Fix deposit: Place in pot & bury under the house

ATM machine: The husband

Collectorial: The daughter

Edited September 22, 2008 by AlKing

[onethailand]

I just paid another installment today. While I am obviously a little concerned, I've yet to see any sign of major trouble for the Thailand branch.

BTW, in Singapore, many of the people supposedly lining up to cash out actually went back the next day to change their minds when they had a better picture of what was going on.

AIA controls more than 50% of the life insurance market in Thailand. If they fall, every one goes with them. So it's a pretty safe bet that the other insurance companies don't want AIA to go bankrupt either...

[Heng]

AIA controls more than 50% of the life insurance market in Thailand. If they fall, every one goes with them. So it's a pretty safe bet that the other insurance companies don't want AIA to go bankrupt either...

The other insurance companies that don't have near-bankrupt parent companies would love to fill that void.

Why do you think AIA going out of business would cause say the Thai operations of Allianz, ING, Prudential, etc. not to mention the solid financials (if you believe the books) of MuangThai, SynMunKong, Bangkok Insurance, etc. to go out of business?

[onethailand]

AIA controls more than 50% of the life insurance market in Thailand. If they fall, every one goes with them. So it's a pretty safe bet that the other insurance companies don't want AIA to go bankrupt either...

The other insurance companies that don't have near-bankrupt parent companies would love to fill that void.

Why do you think AIA going out of business would cause say the Thai operations of Allianz, ING, Prudential, etc. not to mention the solid financials (if you believe the books) of MuangThai, SynMunKong, Bangkok Insurance, etc. to go out of business?

The collapse of Thailand's largest insurer will cause a run on every insurance company which operates here. It won't hurt them on a global scale, but it will cause massive collateral damage locally. It goes without saying that the price of gold will rise dramatically as well

[AlKing]

AIA controls more than 50% of the life insurance market in Thailand. If they fall, every one goes with them. So it's a pretty safe bet that the other insurance companies don't want AIA to go bankrupt either...

The other insurance companies that don't have near-bankrupt parent companies would love to fill that void.

Why do you think AIA going out of business would cause say the Thai operations of Allianz, ING, Prudential, etc. not to mention the solid financials (if you believe the books) of MuangThai, SynMunKong, Bangkok Insurance, etc. to go out of business?

The collapse of Thailand's largest insurer will cause a run on every insurance company which operates here. It won't hurt them on a global scale, but it will cause massive collateral damage locally. It goes without saying that the price of gold will rise dramatically as well

First I get all those annoying friend (insurance sales man / woman) call me to help them by buying insurnace. I gave it. Now I start calling them to ask about the situation. They now tell me that they can't help me as they no longer work there, I have to call the company direct.

Apparently the so call ex-friend of mine quit once he ran out of friends, classmate, relative, etc to sell insurance to. SOB

[Heng]

AIA controls more than 50% of the life insurance market in Thailand. If they fall, every one goes with them. So it's a pretty safe bet that the other insurance companies don't want AIA to go bankrupt either...

The other insurance companies that don't have near-bankrupt parent companies would love to fill that void.

Why do you think AIA going out of business would cause say the Thai operations of Allianz, ING, Prudential, etc. not to mention the solid financials (if you believe the books) of MuangThai, SynMunKong, Bangkok Insurance, etc. to go out of business?

The collapse of Thailand's largest insurer will cause a run on every insurance company which operates here. It won't hurt them on a global scale, but it will cause massive collateral damage locally. It goes without saying that the price of gold will rise dramatically as well

What is a "run" on an insurance company? This isn't the banking industry.

[onethailand]

People cashing out their policies, or else failing to renew them. Singapore had a short run on AIA last week. No one buys life insurance without expecting to get something back.

http://www.lioninvestor.com/aig-spillover-effects-on-aia/