A Japanese insurer that is a unit of troubled American International Group Inc. has received 90.7 billion yen (US$872 million) in additional funds to bolster its financial strength, the company said Tuesday.
Alico Japan said Tuesday it received the money Monday from its U.S. parent, American Life Insurance Co., which is part of the AIG group, after the plunge in the price of AIG shares.
As a result, Alico Japan’s capital base stands at 328.2 billion yen (US$3.2 billion), it said in a statement.
AIG teetered on the edge of failure before accepting an emergency loan from the U.S. government earlier this month. AIG last week signed an agreement with the Federal Reserve Bank of New York for a two-year, $85 billion emergency loan at an interest rate of about 11.5 percent.
AIG was brought to the brink of failure because of stresses caused by the collapse of the subprime mortgage market and the credit crunch that ensued.
The fall in the price of AIG shares had raised worries about Alico Japan.
AIG, the biggest insurance group in the United States, launched Alico Japan in 1973. Alico Japan has been reassuring its clients that there will be no problems with their insurance policies.
Topics USA Pricing Trends AIG
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