Alico’s financial position strong and stable
The Board of Directors of American International Group, Inc. (NYSE:AIG) issued the following statement on September 16th, 2008 in response to the announcement by the Federal Reserve Board that the Federal Reserve Bank of New York is providing a two-year, $85 Billion secured revolving credit facility to AIG that will ensure the company can meet its liquidity needs “The AIG Board has approved this transaction based on its determination that this is the best alternative for all of AIG’s constituencies, including policyholders, customers, creditors, counterparties, employees and shareholders. AIG is a solid company with over $1 Trillion in assets and substantial equity, but it has been recently experiencing serious liquidity issues. We believe the loan, which is backed by profitable, well-capitalized operating subsidiaries with substantial value, will protect all AIG policyholders, address rating agency concerns and give AIG the time necessary to conduct asset sales on an orderly basis. We expect that the proceeds of these sales will be sufficient to repay the loan in full and enable AIG’s businesses to continue as substantial participants in their respective markets. In return for providing this essential support, American taxpayers will receive a substantial majority ownership interest in AIG”.
Policyholders of AIG companies around the world can rest assured that AIG’s commitments will continue to be honored.
AIG’s life insurance, general insurance and retirement services businesses continue to operate normally and remain adequately capitalized and fully capable of meeting their obligations to policyholders.
The insurance policies written by AIG companies are direct obligations of its regulated subsidiary insurance companies around the world. These companies are well capitalized and meet or exceed local regulatory capital requirements. The companies continue to operate in the normal course to meet obligations to policyholders.
The AIG companies are fully committed to maintaining required capital levels in all of its subsidiaries and to meeting the needs of their customers around the world.
