Market Watchdog: AIG Clients from our Country Can Remain Calm

According to insurance industry authorities, the clients of AIG Life Insurance Romania, AIG Insurance Company of Romania and AIG Retirement Fund, from our country will not be affected by the problems of the American group. After the American Bank "Lehman Brothers" announced its bankruptcy and Merrill Lynch was taken over by Bank of America for $50 billion, the international analysts quoted by the news agency Reuters estimated that the insurance company AIG can be the next American giant that crashes. According to the opinion of some analysts, a possible bankruptcy of AIG will seriously influence the price of oil: "At present, AIG has a bigger impact over the price of oil than Arabia.", declared Larry Grace, energy problems analyst of Kim Eng Securities Hong Kong, quoted by Reuters. At the opening of the stock exchange meeting in New York, AIG shares fellby almost 70%, and the market capitalization dimished by cca. 90% since the beginning of the year. The problems of American International Group alerted the authorities from our country, that have sent official announcements to calm the clients of AIG branches here. According to the Insurance Supervision Committee (CSA), "AIG Life Insurance Romania S.A" and "AIG Insurance Company of Romania" respect valid standards regarding solvency and the liquidity. "In the first semester of 2008, the two companies reported profits. At the same time, the two companies contracted reinsurance agreements with many reinsurance companies, the rate of risk inside the group they are a part of being very low. AIG Group is present on the retirement market of our country through the agency of "AIG Retirement Fund", that manages the Fund of "AIG Private Retirement Pay". "AIG Life Insurance Romania S.A" is the major stockholder of the company.

The alarming news coming from the american group AIG and the announcement of the Dutch insurer Aegon, according to which the exposure towards the bankrupt Lehman Brothers reaches 265 millions Euro ( $371 million ) alerted the settlement authority in the field of private retirement ofour country. Aegon settled an agreement with Transilvania Bank through the agency of which a company of private retirement administration was set up. The Supervision Committee of the Private Retirement System (CSSPP) insisted on specifying through the agency of an announcement that the situation from the American financial market does not endanger the retirement market in Romania. "The financial difficulties through which the biggest financial institution of the USA are passing, present, in a way or another, on the private retirement market from Romania, do not influence the funds of privately managed retirement pensions or the contributions of the participants.", according to CSSPP. Through the manner of organization of the system, through the parting of the retirement fund shares from those of the superintendents, the contributions of the participants "are safe" from any difficulties that the superintendents of the private retirement funds or their stockholders could pass through, at a given moment.

Moreover, no action regarding the fund shares can be taken without the keeper"s permission, which, together with the superintendent, is responsible in front of the participants and which is supervised and controlled by BNR, such that CSSPP reassures the clients of the superintendents whose stockholders have problems. CSSPP uses also other elements for the security of the private retirement fund from Romania, among which the financial situation supervision, the duty of transparency and reference, the actuarial report, the technical commission, the permanent surrveilance and control made by CSSPP, and the quoted announcement ads.