Wellington, Sept 17 NZPA - AIG New Zealand's website says it is a member of the world's largest and most stable commercial insurer which has financial strength "you can count on".

Today the company welcomed the $US85 ($NZ130) billion bailout of parent American International Group.

"We are pleased to announce that the Federal Reserve of New York is providing a two-year $US85 billion secured revolving credit facility to AIG that will ensure that the company can meet its liquidity needs," AIG New Zealand said in a statement to reassure its clients that it was business as usual in New Zealand.

AIG New Zealand chief executive Rob Ryan said the company's general insurance business was conducted through a locally registered branch of American Home Assurance Company, a company incorporated in New York and trading as AIG New Zealand.

"The liquidity of AIG New Zealand remains strong. Our ability to pay claims and our commitment to writing challenging risks is undiminished," he said.

AIG Life's New Zealand general manager David Pierce said his company remained in a strong position.

The insurance policies it has written in New Zealand are direct obligations of AIG Life in New Zealand. "We work solely in the New Zealand market," he said.

In a statement in the US AIG's board of directors said the Fed loan will protect all AIG policy holders, address concerns of rating agencies and buy the company time to sell off assets.

NZPA WGT Reuters pjg nb