Sep 2008 Financial News

Algico: We're strong, safe

Sep 17, 2008

Local insurance provider Algico assured policyholders yesterday that the Port of Spain-based company was in a strong financial position.

The company was responding to concerns about the financial troubles of the American International Group, the world's largest insurer.

Algico is a member of United States-based AIG, which also underwrites commercial and industrial coverages in the US.

AIG has been struggling to stay afloat following the market crash in the US at the weekend. Its shares fell on New York's Wall Street yesterday, prompting fears that the insurer could come up with more money to stay alive.

The sudden collapse of major financial services company Lehman Bros, the rescue sale of Merrill Lynch and what seemed to be AIG's imminent collapse in the US, as well as the subsequent financial turmoil, could have an economic fallout in other markets, including Trinidad and Tobago's, Central Bank Governor Ewart Williams told the Express in an interview on Monday.

Algico's managing director, Mark Hansen, yesterday admitted that concerns were raised about the possible impact of financial problems in the US on the 55-year-old Port of Spain insurance firm.

"Let me state unequivocally ... Algico, its assets, its employees and its policyholders remain in a strong position despite whatever turbulence is affecting AIG and the US financial system. Let me repeat, policyholder funds and investments are not at risk," Hansen said in a statement following queries by the Express.

Hansen said Algico was a Trinidad and Tobago company and 100 per cent of its insurance policies were direct obligations within the country and followed strong local regulations.

"We are well capitalised and financially solid," he said, adding that 90 per cent of Algico's investment portfolio was based in Trinidad and with ten per cent in the European market.

Of its local investments, 80 per cent are in Government securities and 20 per cent in local real estate and bank deposits.

"We have no AIG stock shares in our investment portfolio," Hansen said, adding that Algico's ability to pay claims were undiminished and it would continue to protect its policyholders and fulfil obligations.


Source:
Curtis Rampersad
Daily Express, Page 3
Wednesday, September 17th 2008

http://www.trinidadexpress.com/index.pl/article_news?id=161376894