More than 1,500 AIG policies terminated in Hong Kong: Report
More than 1,500 insurance policies with the local subsidiary of troubled global giant AIG have been terminated in Hong Kong in two days.
By Agencies |
HONG KONG: More than 1,500 insurance policies with the local subsidiary of troubled global giant AIG have been terminated in Hong Kong in two days, a radio station reported on Wednesday.
The report by RTHK came just hours after the US government announced an unprecedented 85 billion US dollar bailout for American International Group (AIG), in a bid to prevent a widescale meltdown on global markets.
The station quoted government sources saying that about 1,400 policies with subsidiary AIA in the southern Chinese territory had been cancelled on Tuesday. Another 170 policies were terminated on Wednesday.
There were a total of 1.95 million policies with AIA in Hong Kong, the broadcaster said.
Government officials refused to confirm the numbers but said the situation appeared to be improving after the bailout by the US Federal Reserve, in a deal which also gives the Fed an 80 percent stake in the insurance behemoth.
"The number of enquiries made to AIA was back at normal levels today," Hong Kong Insurance Commissioner Clement Cheung said.
He said he believed the mesaures taken by the US government have helped stabilise the situation.
Hong Kong Financial Secretary John Tsang told a news conferemce that there was "no sign of any large scale outflow of capital from Hong Kong".
"If necessary, liquidity will be provided by the Hong Kong Monetary Authority to ensure the orderly operation of the market," Tsang said.
The report by RTHK came just hours after the US government announced an unprecedented 85 billion US dollar bailout for American International Group (AIG), in a bid to prevent a widescale meltdown on global markets.
The station quoted government sources saying that about 1,400 policies with subsidiary AIA in the southern Chinese territory had been cancelled on Tuesday. Another 170 policies were terminated on Wednesday.
There were a total of 1.95 million policies with AIA in Hong Kong, the broadcaster said.
Government officials refused to confirm the numbers but said the situation appeared to be improving after the bailout by the US Federal Reserve, in a deal which also gives the Fed an 80 percent stake in the insurance behemoth.
"The number of enquiries made to AIA was back at normal levels today," Hong Kong Insurance Commissioner Clement Cheung said.
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He said he believed the mesaures taken by the US government have helped stabilise the situation.
Hong Kong Financial Secretary John Tsang told a news conferemce that there was "no sign of any large scale outflow of capital from Hong Kong".
"If necessary, liquidity will be provided by the Hong Kong Monetary Authority to ensure the orderly operation of the market," Tsang said.
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