AIG is stable on the Romanian market despite problems witnessed by the mother group, market watchdog

The Romanian insurance market watchdog CSA announced today the solvency and liquidity indicators of insurers AIG Life Asigurari Romania and Societatea de Asigurari AIG Romania follow demands required by the current norms on prudence, according to CSA.

CSA made this statement following information published today in Romania, regarding the recent evolution of AIG shares on the stock exchange in New York.

American International Group (AIG) plans to sell assets of 20 billion U.S. dollars to correct the 35 percent drop in trading price of shares listed on the stock exchange in New York, according to foreign press, quoted by Reuters. Rating agencies warned to downgrade AIG's rating.

AIG required a short-term loan of 40 billion U.S. dollars from the American central bank, Federal Reserve, in a bid to avoid downgrade of ratings, according to New York Times, quoted by Reuters.

The insurer saw losses of 18 billion U.S. dollars in the past three quarters.

The two insurance companies on the local market posted profit in the first semester of 2008 and closed reinsurance contracts with several players, paving the way to lower percentage of risk restrained by the group they belong.

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