Guaranteed benefits will continue to be guaranteed. Non guaranteed benefits are normally backed by higher yielding assets such corporate bonds, equities or real estate. So even if AIG goes bust, as long as the assets backing the non guaranteed benefits continue to perform, you will still receive your non guaranteed benefits.
All AIA insurance policy holders come in...
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Guaranteed benefits will continue to be guaranteed. Non guaranteed benefits are normally backed by higher yielding assets such corporate bonds, equities or real estate. So even if AIG goes bust, as long as the assets backing the non guaranteed benefits continue to perform, you will still receive your non guaranteed benefits.
contaxable
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To a certain extent I can see your point. But honestly, i was told there are many ways to shift funds within the structure to make it not look too hollow. My family members invested quite a fair bit of hard earned cash meant for retirement. Only one relative who is a banker refused the deal as he is into fx trading. He said he had a hunch as he saw banks collapsing.
Anyway, nothing much can be done now. Lets all hope for the better.
Not really, MAS is very strict with regards to this. it is important that the insurer or bank writing the product hold assets that are suitable for the type of liabilities it has. In the case of guaranteed yield plans, suitable assets would mean assets with low risk of default. Even if they chose to move the AAA bonds elsewhere it has to replace them with assets with similiarly low risk of default.
Also I read that total assets of AIG exceeds it's total liabilities by 70+ billion. What's happening now is just a short term cashflow problem. Hopefully it will be able to pull.
AIG stock was trading at $1.4x a few hours ago, as compared to $50+ dollars 1 - 2 years ago..... I'm really glad I'm not holding any AIG stock.
AIG stock was trading at $1.4x a few hours ago, as compared to $50+ dollars 1 - 2 years ago..... I'm really glad I'm not holding any AIG stock.
that is a hefty drop in share pricE!
etegration
Senior Member
hold and see.
falconite
Senior Member
Thanks Zplus for the links.
The Giant stumbled but seems like the giant will not be allowed to fall, yeah Federal need to step in on this.... Actually many parts of the world including Singapore are waiting for a break to cash-out on their investment, which is a commitment for a period of time and stripped them of liquidity. News as such break... regardless of MAS advise and despite the assuarance... still get many to run to the insurer. More like an excuse ... afterall the commitment was made so many years ago..
Cash out before the maturity only makes insurer happy... sum is lower than their commitment. Let's see where this will bring us to.. in anycase.. the global economy is shakened.. keep watch.
The Giant stumbled but seems like the giant will not be allowed to fall, yeah Federal need to step in on this.... Actually many parts of the world including Singapore are waiting for a break to cash-out on their investment, which is a commitment for a period of time and stripped them of liquidity. News as such break... regardless of MAS advise and despite the assuarance... still get many to run to the insurer. More like an excuse ... afterall the commitment was made so many years ago..
Cash out before the maturity only makes insurer happy... sum is lower than their commitment. Let's see where this will bring us to.. in anycase.. the global economy is shakened.. keep watch.
sebastiansong
Senior Member
To invest anot ?
Be fearsome when ppl r greedy n be greedy when ppl r fearsome . ;p
Saw it in a book ...
you are quoting Warren Buffett
http://www.forbes.com/lists/2006/10/C0R3.html
Prefers his investors to buy equities only after careful analysis. "If they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful."
this is not a market for the faint hearted..
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contaxable
New Member
Last time, when I talk to aia insurance agents, they credit the backing to AIG and how vast and massive the conglomerate was. Now, they say they not linked at all as they are totally separate entities. :bsmilie:
This is a trademark of bamboo diplomacy - formerly used by the Thai.
This is a trademark of bamboo diplomacy - formerly used by the Thai.
they are trained and programmed to say to clients from their " training notes "
come on, the money earned from those policy sales are huge ! who dun want ? :bsmilie:
a bankrupt is a bankrupt. big words cloud the reality.
policies will turn into worthless paper.
wats the point of holding the empty worthless houses as assets? the pillars and roof tiles cannot pay its debt.
This beats all assumptions that AIA is safe.
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