By ROSARIO T. GALANG and JIMMY CALAPATI

Jose L. Cuisia, Jr., president of Philippine American Life and General Insurance Co., yesterday said that 10 foreign and local groups have offered to buy American International Group’s units in the Philippines.

"They have e-mailed me, texted me, called me up" he told reporters as he explained that the Philamlife, valued at P170 billion ($3.6 billion) as a group, is a "trophy" company many would be eager to get.

The amount however is but a fraction, four percent, of the $85 billion debts, AIG must pay in two years.

Cuisia said that he as CEO, and after nurturing the company after his stint as central bank governor, "understands why AIG, forced by circumstance, has to sell ‘crown assets’".

Saying that he has no "golden parachute to speak of", not having a "contract" and due to retire next year, he is not spearheading a "management buyout."

Cuisia hastened to calm the fears of policyholders saying that everything is being done to ensure that there will be a smooth transition of ownership and that only companies with strong reputable brand, financially strong and with strategic fit to Philamlife will be considered.

"Those that don’t fit will be immediately crossed out", he said.

He said that Philamlife’s one million individual and corporate policyholders can rest assured that the group’s funds invested in safe instruments like government debt, cannot be raided by "new owners".

When questioned on the possibility of another former central bank governor running a new or merged "Philamlife", he answered he wants to be kind and will opt for "no comment".

AIG had to sell the assets and "we don’t take it against the company".

He said he has also briefed employees, about 1,500 and agents.

Philamlife, 99.98 percent owned by AIG, is the country’s largest insurer.

Cuisia said the number he gave excludes those who may have approached AIG’s advisers Blackstone Group LP and J.P. Morgan Chase & Co. with an offer.

A few of the buyers expressed interest to acquire the Manila-based AIG PhilAm Savings Bank (AIGPASB) alone while most were keen on buying the whole group, Cuisia said.

AIG Philam Savings Bank is jointly owned by AIG Consumer Finance Group and Philamlife.

Philamlife group, which has consolidated net worth of P49.5 billion as of end-2007, are life insurance, general insurance, asset management and an outsourcing firm.

Cuisia said Philamlife being a "strong brand, market leader for six decades and with the widest network of agents" is a trophy company any conglomerate may wish to have.

AIG, once the world’s largest insurer, was thrown a lifeline federal loan on Sept. 16 but the loan carries a high interest rate and fees and must be repaid in two years.

Cuisia said Blackstone and J.P. Morgan will determine how Philamlife would be sold, either as one block or separate units.

Philamlife revenues reached P36.7 billion at end-2007, up 14 percent from a year ago.

Cuisia said Philamlife’s invested assets were placed in marketable Philippine government securities and corporate bonds, with only about 5 to 6 percent of its invested assets in Philippine equities.

Meanwhile, AIG will also sell Thai consumer finance businesses, including AIG Retail Bank and AIG Card. AIG also plans to sell its three Japanese life insurance businesses in a sale estimated to top $9.5 billion.

Last week, the Yuchengco Group, owners of Rizal Commercial Banking Corp. and Grepalife, announced its interest to bid for Philamlife.

But Cuisia admitted that some policy holders have been spooked by the AIG mess and surrendered their policies.

"We can’t stop them if they choose to surrender their policies. At the same time, we are giving them 2-weeks grace period if they opt to reinstate," Cuisia said.

"Our policyowners and clients can be assured that their interests are protected because of the company’s financial strength."

Cuisia added that a change in ownership will not in anyway diminish policyowners’ benefits and security.

"We will remain focused on daily execution of our business and continue to provide our policyowners and clients with the highest levels of service," Cuisia added.

Among its subsidiaries include Philam Plans Inc., AIG Philam Savings Bank, Philam Equitable Life Assurance Company, Philam Care, Philam Asset Management Inc., Philam Properties, AIG Business Processing Services, Inc. and Philam Insurance.

"We have a competent staff. We are not in a position to dictate but we will exert to retain as much as many employes," Cuisia said.

Cuisia said that they don’t want to reduce jobs.

Sen. Edgardo Angara urged government regulators to closely monitor the impending sale of American Insurance Group’s Philippine subsidiary PhilamLife in order to protect policy and plan holders.

"We should assure all Philam Life policy and plan holders that their investments are safe and are not affected by the pending change of ownership," Angara said.