In Singapore, hundreds lined up outside the company's local headquarters while more than 1,200 descended on the Taipei offices of AIG subsidiary Nan Shan Life Insurance.

About two dozen anxious customers crowded into a small AIG subsidiary office in Hong Kong, where RTHK radio, citing government sources, reported more than 1,500 insurance policies with the subsidiary had been terminated in two days.

Some clients said they were unmoved by the US Federal Reserve's announcement of an unprecedented loan of up to 85 billion dollars to avert a collapse of AIG, which was expected to lead to a global financial calamity.

Pentja, an Indonesian, said he had flown from Jakarta and gone immediately to queue outside the Singapore offices of AIG and its wholly-owned subsidiary American International Assurance Company Limited (AIA).

He said he knew about the US rescue plan for AIG but wanted to terminate his three policies anyway.

"I prefer to take out the money. I don't mind the loss," he said.

Karen Choo, of Singapore, was also insistent on withdrawing her funds.

"I don't feel confident. I'd rather take the money out and invest elsewhere," said Choo, who took the day off work to join the queue, which stretched around the office tower in Singapore's financial heart.

Choo said she had two policies worth about 100,000 Singapore dollars (70,000 US).

"It's such a big insurance company. Who would have thought? We still want to go ahead to surrender our policy. At least we get back some of the money," said another woman, who gave her name only as Lim.

In Taipei, hundreds of customers were seen waiting inside the downtown Nan Shan office. Some hoped to secure loans on their insurance policies while an unknown number of others terminated them.

One woman said she hoped to get a loan of up to to 1.5 million Taiwan dollars (46,875 US) using one of her family's five policies. She said she knew of the US government's rescue plan but "I'm afraid we may lose everything."

The Taipei and Singapore crowds dwarfed the number of AIA customers who crammed into a small office of the firm in Hong Kong. Many of the about 20 clients there inquired about unloading their insurance.

Authorities and AIA subsidiaries around the region sought to assure customers that the local firms are not in danger.

Nan Shan called for calm, while Taiwan's financial regulator said the firm is financially healthy.

Hong Kong officials said the US bailout appeared to ease worries.

"The number of enquiries made to AIA was back at normal levels today," Hong Kong Insurance Commissioner Clement Cheung said.

AIA Singapore says it has more than sufficient capital and reserves to meet obligations to policyholders. It said the funds maintained in Singapore are segregated from AIG.

Singapore's de facto central bank, the Monetary Authority of Singapore, cautioned policyholders against the hasty termination of their policies.

But some still wanted answers. By late afternoon, the Singapore office could not handle any more queries and asked hundreds of customers to come back on Thursday.

The US deal gives the United States government a stake of 79.9 percent in AIG in exchange for the loan.

AIG appeared to be in a death spiral after more than a week of panic and turmoil in financial markets that led to the failure of US investment giant Lehman Brothers and a sale of Wall Street rival Merrill Lynch.

They were all casualties in a financial crisis that grew out of troubles in the US subprime, or higher-risk, mortgage sector last year.

burs-it/th

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