25 Sep 2008
NTUC Income would like to assure our policyholders and partners that the recent financial turmoil in the US and our exposure to Lehman Brothers, Merrill Lynch and AIG have not impacted our financial strength. NTUC Income's continued AA credit rating by Standard & Poor's makes us one of the strongest insurance companies in the region.
Our exposure to the three affected companies in our Insurance Funds (excluding investment-linked policies) amounts to less than 0.3%. For our investment-linked funds, our exposure to these companies is limited to 3 funds out of 15, and ranges from 0.1% to 0.6% of the funds. Our exposure to the whole financial sector in the US is a modest 3.6% of our Insurance Funds. This exposure is insignificant and has little impact on our financial standing and our ability to meet all our financial obligations.
NTUC Income takes a long term view with respect to our investment strategy as we believe that this will provide the best returns to our policyholders. Our investment strategy has and will continue to be anchored on prudence, and our portfolio is well diversified. We are pleased that our investment strategy has thus far delivered attractive yields to our policyholders.