There has been much speculation in the media in recent days regarding the situation surrounding AIG U.K. Ltd. 

Up until now, we have had no concrete news as to how the UK subsidiary (a quite separate legal entity) would be affected by the financial problems of the US parent. 

However, we now understand that a financial “rescue” package is being put in place to overcome these temporary problems. This may include subsidiary companies transferring some of their surplus assets to the parent.

Please rest assured the Financial Services Authority, the UK body which regulates and authorises insurers, will not allow AIG to transfer any money which would deplete the minimum reserves required for AIG to continue trading in this country. 

We will endeavour to keep you informed of developments as they occur. However, should you have any queries please do not hesitate to contact us.