AIG's Korean unit says no need to worry about liquidity crisis

SEOUL, Sept. 16 (Yonhap) -- The South Korean unit of American International Group Inc. said Tuesday its clients don't need to worry about a liquidity crisis amid news reports that the U.S. insurance giant is struggling to put together a survival plan.

Hit by America's turmoil in housing and credit markets, AIG was reportedly going
to the U.S. Federal Reserve to help raise fresh capital, prompting South Korean
policy holders to raise concerns about their insurance accounts.

"As of the end of March, AIG's solvency margin ratio stands at 146.6 percent
and liquidity is stable," the U.S. company's Korean unit said in a statement
posted on its Web site.

The solvency margin ratio is an important indicator that helps to judge whether
an insurer is strong enough to pay claims to policy holders as scheduled. The
base ratio is 100 percent in South Korea.

"AIG would like to express its deepest apologies for causing worries to the
policy holders," the Korean unit said.

However, the AIG's Korean unit said policy holders would receive at least 50
million won (US$43,000) under the Korean government's deposit protection program
"if a "worst-case scenario happens"

Repeated calls to AIG's Korean unit weren't answered.