Your AIA Insurance Policy payouts might be halfed

[Berncsp76]

Heard from the radio when driving to work...lucky never buy any AIA policy...haha. Probably the payouts will be reduced significantly especially those endowment policies...quick decide now bros and sis! The takeover will be announced soon, most probably today.

 

http://www.channelnewsasia.com/stories/afp...1040662/1/.html

 

AIG in US$35b sale of Asian arm to Prudential

 

LONDON: US insurance giant AIG has accepted a deal to sell its Asian arm, AIA, to British insurer Prudential for around US$35 billion, a source close to the deal said Sunday.

 

AIG, which was just recently considering a flotation of its Asian activities, finally agreed to let Prudential buy its Asian arm, said the source.

 

The deal would make Prudential the top non-Chinese global insurer by capitalisation, notably ahead of Allianz and AXA.

 

It is understood the sale will be unveiled in the coming days, perhaps as early as Monday.

 

Tidjane Thiam took up the job of Prudential chief executive in October and had never hidden his desire to expand the business in Asia.

 

He went to New York at the end of last week to persuade AIG's board of directors to sell his company AIA. AIG had been planning an initial public offering for its Asian arm in Hong Kong in April.

 

Prudential's shareholders, for their part, welcomed the company's projects, said the source. The British press at the weekend reported that the group Resolution was trying to strike a deal with Prudential to buy its British businesses.

 

AIG was hard hit by the financial crisis and received more than US$170 billion in a taxpayer bailout. In 2008, the firm tried to sell up to 49 per cent of AIA through an auction process but had to drop the idea after failing to receive suitable offers.

 

- AFP/sc

 

[Babyt]

my father policy has reduced 20k less than projected after the crisis...

[Bommii]

pls dont spread rumours, employees may suffer due to takeovers but contracts will still be honoured, i dont think policy value will be halved, MAS have stringent measures not to let this happen.

[Berncsp76]

pls dont spread rumours, employees may suffer due to takeovers but contracts will still be honoured, i dont think policy value will be halved, MAS have stringent measures not to let this happen.

 

We shall see...

[Booboon]

Non guarantee portion becums zero?