The Yuchencgco Group of Companies (YGC) is looking at acquiring a part or all of the Philippine American Life Insurance Company (Philamlife), the local arm of American Insurance Group (AIG), which was recently effectively bought by the U.S. government through a bailout of $ 85 billion by the Federal Reserve. AIG was one of the biggest victims of the U.S. sub-prime mortgage crisis and resulting property downturn, which sunk investment bank Lehman Brothers. YGC is one of the largest and most diverse conglomerates in the country, with investments in banking, insurance, transportation, education and construction. The group is headed by Ambassador Alfonso Yuchengco.
AIG is the world’s largest insurer and was deemed “too large to fail”. However, it is expected to announce a massive restructuring any time now. In an official statement, the Fed said it intends to “facilitate a process under which AIG will sell certain of its businesses in an orderly manner, with the least possible disruption to the overall (U.S.) economy.” This presumably means its overseas assets would be first to go. Read the rest of this entry »