UK customers of AIG were today told they will have to wait 90 days if they want to withdraw their money.

The company insisted that there was no cause for panic, but admitted it has seen a high number of withdrawal requests from nervous investors.

AIG Life, the UK insurance subsidiary, underwrites 12 million car and home insurance policies.

Its wealth management arm looks after 9000 high net worth individuals, managing assets of £14 billion in all.

The company says it is contacting all policyholders to reassure them that the UK business is not affected by the turmoil. However, it has made it harder for customers to access their funds.

In a statement the insurer said: “In response to market volatility over the past few days and an unusually high number of withdrawal requests, AIG Life (UK) has decided to defer withdrawals from the Standard Fund and the Enhanced Fund held within the Premier Access Bond and the Premier Bond. This action is taken in the interests of all policyholders invested in these funds.”

Other policies issued by the firm are not affected by this measure, it says.

AIG did not say how long it would have the new policy in place.

UK insurers including AIG Life are regulated by the top City watchdog, the Financial Services Authority, and have to meet its solvency requirements. As such, its assets are ring-fenced from the parent company and would not have been used to pay creditors in America even if AIG had been allowed to collapse.

AIG is the biggest insurer in the world, with interests across the globe.

The company is also the shirt sponsor of Manchester United.