AIG facing liquidity crisis!

**Zeus** · October 27th, 2008 05:28 PM

Interesado talaga si Winston dito

GSIS wants up to 49 percent of Philamlife

10/22/2008 | 04:48 PM

MANILA, Philippines - State-run Government Service Insurance System (GSIS) wants as much as 49 percent of Philippine American Life and General Insurance Co. (Philamlife), which is being sold by cash-strapped parent American International Group.

GSIS President Winston Garcia on Wednesday told reporters that the pension fund manager is scouting for partners for the possibility of buying a stake in Philamlife.

"We are seriously looking at being a strategic investor. The values are there and we are interested but not necessarily the majority. It is a range of one percent to 49 percent," Garcia said.

He added that GSIS is already in talks with foreign and local investors for a tie-up for the Philamlife acquisition.

“We have a member base of 1.3 million. There is synergy when it comes to life insurance since we compliment and draw strength from each other. GSIS and Philamlife can be dominant," Garcia said.

GSIS will be reviewing Philamlife's books to check if buying a stake in it is indeed sound investment.

GSIS tops the list of government-owned and controlled corporation with total assets amounting to P441.8 billion. It posted a net profit of P41.5 billion despite paying off member claims and benefits worth P34.9 billion in 2007.

Early this month, Philamlife president and chief executive Jose Cuisia said at least ten companies have expressed interest in acquiring the insurance firm which has a net worth of P49.5 billion.

Groups which have expressed interest in Philamlife include the Yuchengcos, the Ayalas, the Sys, and even food and beverage giant San Miguel Corp. - GMANews.TV

**uls** · October 27th, 2008 05:47 PM

Before making more investments, GSIS should reveal its losses in foreign investments first.

GSIS has investments in foreign fixed income, foreign equities, even foreign property-backed securities.

Sigurado meron malaking losses yan. GSIS is not being transparent.

Pera ng mga govt employees ang nilalaro ni Winston.

**Zeus** · January 24th, 2009 02:26 PM

AIG sells local banking unit to East West Bank

01/24/2009 | 12:12 AM

MANILA, Philippines - Beleaguered financial conglomerate American International Group, Inc. (AIG) has sold its Philippine consumer banking arm to mid-sized commercial bank East West Banking Corp., marking the first in a series of deals involving the divestment of its local businesses.

Officials of both firms yesterday announced they have sealed an agreement for East West’s takeover of AIG PhilAm Savings Bank, Inc., an indirect subsidiary of New York-based AIG.

Philam Savings is 45 percent owned by AIG Consumer Finance Group and 45 percent by the Philippine American Life and General Insurance Co. (Philamlife), the country’s largest insurer, which were also both signatories to the sale transaction.

The agreement also included East West’s purchase of Philam Auto Finance & Leasing, Inc. and PFL Holdings, Inc. — both owned by AIG Philam Savings Bank. The two firms were held by Ford Credit International, Inc. until AIG’s local thrift bank bought them in December 2007.

“This is the first transaction in a series we’ll do in the next months," Sabby Ray, chief executive officer of AIG Consumer Finance Group, told reporters yesterday in a briefing.

AIG has put most of its so-called “crown jewels" in Asia for sale to repay an $85-billion lifeline extended by the US government last year, when storied American financial institutions succumbed to a credit crunch.

AIG’s wholly-controlled Philamlife and its subsidiaries, which are also all up for grabs, will be sold as a block, Philamlife President and Chief Executive Officer Jose L. Cuisia, Jr. said.

In a separate interview, Mr. Cuisia said Philam Insurance, Philamlife’s wholly-owned non-life insurance affiliate, would be spared from the sell-off.

The non-life subsidiary will be folded in American International Underwriters (AIU), which manages AIG’s overseas property-casualty operations, he said.

“It’s [Philamlife and its affiliates] being sold as a whole, except the bank [Philam Savings which East West purchased] and non-life company that’s sold to AIU, which is part of AIG," Mr. Cuisia said in a separate interview, adding that the block sale should be made this year.

Philamlife has at least eight subsidiaries that are in the business of pre-need plans, bancassurance, healthcare, banking, credit cards, asset management, property and casualty insurance, property management and development, and business process outsourcing.

Source:gmanews.tv

**Zeus** · January 24th, 2009 03:12 PM

GSIS abandons bid for life insurer Philamlife

01/15/2009 | 03:52 AM

MANILA, Philippines - State-run Government Service Insurance System (GSIS) has abandoned plans to bid for Philippine American Life and General Insurance, Co. (Philamlife), country’s largest life insurer, which is being sold to help pay for its parent company’s debts.

Winston F. Garcia, GSIS president and general manager, told reporters Wednesday that Philamlife is requiring bidders to make an offer even before they conduct a due diligence.

"How can we make an offer if they don’t allow us to do due diligence?" he complained.

"For me, P1 million is the worth of Philamlife," he added. "The premiums that planholders pay on a regular basis have to be invested somewhere. They are invested in stocks, which are down. They are bragging about the cashflow but how about the liabilities Philamlife will face once these plans mature?"

BusinessWorld was unable to reach Philamlife officials Wednesday.

In October, Philamlife’s parent firm, the beleaguered American International Group Inc. (AIG), announced it was selling its assets to pay its loan from the US Federal Reserve. That lifeline saved AIG from collapse.

Based on data from the Insurance Commission, Philamlife’s assets of P108.35 billion was the largest among local life insurers in 2007. Its net worth was also the highest at P21.37 billion.

Large local conglomerates like the Metrobank Group of tycoon George S.K. Ty, San Miguel Corp., Ayala Corp. and the Yuchengco Group of Companies have expressed interest to acquire Philamlife.

Mr. Garcia also told reporters Wednesday that French bank BNP Paribas and a local bank, which he declined to name, have expressed interest in acquiring the state pension fund’s thrift banking arm, GSIS Family Bank.

The Industrial and Commercial Bank of China (ICBC) Ltd., the largest among China’s four state-owned commercial banks, is interested in GSIS Family Bank as well, and has finished its due diligence.

Mr. Garcia said GSIS is thinking of putting up 60% to 70% of the thrift bank for sale for P3 billion to P4 billion.

"It is going to be a buy-in. We will issue new shares to them. They will buy in 60%-70% of the company. This will enhance the value of our stake in the bank and at the same time, increase the viability of the bank. We will retain our shares in the bank," he added.

GSIS gained control over debt-ridden ComSavings Bank, which was renamed GSIS Family Bank, in 1986 after the bank failed to pay its debt to GSIS.

"We don’t know how to run a bank. It is a foreclosed property of GSIS. We want to recover our investment there. We believe it will be better run by the private (sector). If the price is right, we will sell it," he said. — Ruby Anne M. Rubio, BusinessWorld

Source: gmanews.tv

Balita ang Sunlife ay nag backout na rin e

**uls** · January 24th, 2009 03:27 PM

east west bank bought the AIG units for $42M

**Horsepower** · January 25th, 2009 11:54 AM

So EW Bank bought Philam without conducting due diligence??

Wow. That's bold (and quite possibly stupid). hehehe.

**LadyRider** · January 25th, 2009 03:47 PM

Originally Posted by uls

east west bank bought the AIG units for $42M

East West Bank bought Philam Savings Bank for $42M (only the bank and nothing more)

**uls** · January 25th, 2009 03:59 PM

yes i know

the units: the bank (Philam Savings) and the car financing company (Primus Finance and Leasing)

not the insurance business

actually, east west overpaid for the units

the bank is valued at P1.3B

the car financing company is valued at P300M

P1.6B lang dapat

but east west paid about P2B