By Lawrence Agcaoili

Insurance giant Philippine American Life and General Insurance Co. yesterday welcomed the decision of beleaguered American International Group to scrap its sale and make it part of the company?s Hong Kong-based subsidiary.

Philam Life president and chief executive Jose Cuisia Jr. said in a statement that the decision to incorporate the company within American International Assurance Co. Ltd. would boost its resources and market reach.

?Joining the AIA group of companies, subject to regulatory approvals, will provide Philamlife with access to the resources and Asia-wide network of the region?s market leader,? said Cuisia.

The former central bank governor said Philam Life had historically been a strong business, being the leading life insurer in the Philippines with the widest network of offices, largest number of agents and most extensive portfolio of products and services.

AIG shelved the sale of Philam Life after getting a fresh $30-billion capital infusion from the US government as it booked net losses amounting to $62 billion in the fourth quarter.

The sale was shelved after AIG received dismal offers from potential buyers last week. The groups, led by Banco de Oro Unibank?Assicurazioni Generali SpA, Bank of the Philippine Islands of the Ayala Group and Prudential Life of the UK, and Manulife Financial of Canada reportedly submitted bids to take over one of the country?s largest insurance provider.

AIA president Mark Wilson said in a statement that Philam Life would be retained and made part of the AIA group.

He said it was appropriate at this time to include Philam Life in the new AIA structure as the rest of the company is being separated from AIG and positioned as an independent operation.