AIG Philippines, a unit of the American non-life insurer, announced that it’s set aside $2.5 billion for property insurance ahead of the P7-trillion infrastructure rollout under the administration of President Duterte.
The announcement comes as AIG prepares to be able to offer cover for the country’s upcoming massive investment in infrastructure – Phillipine President Duterte and Japanese Prime Minister Shinzo Abe have agreed to finalise a deal later this year that would jump-start the construction of the country’s first subway system.
The $2.5 billion fund is part of the company’s renewed strategy of increasing offers for public-private projects (PPP) and growing its insurance fund after having reviewed its investment portfolio and growth strategy.
AIG Philippines President and CEO Mark Lwin told the BusinessMirror; “With the infrastructure boom expected in the Philippines, that amount of capacity or new capability meets the needs of the Philippine market. So, that’s the kind of traditional insurance line where our competency is at work.”
“We have a fairly traditional or more conservative approach here. As an insurance company, we have not yet directly invested in PPP securities, but it’s something we’re definitely looking at and very interested to see where the PPP market will go in the future,” he added.
He commented that the insurer would be open to investing further in other securities and Philippine stocks, he added, however, that AIG would continue to invest in and seek to expand its core product.
Lwin said;“There’s a couple of areas where we are maybe more active and may have a high interest level, particularly in more customized risk solutions.”
So, maybe it’s in terms of a catastrophe bond [for earthquake or hurricane losses] or other ways to provide advisory services,” the BusinessMirror reported.