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Lexington Insurance Company announced today that effective September 15, 2008 it has arranged a Contingent Property Reinsurance cover from Berkshire Hathaway's National Indemnity Company for Lexington's Real Estate Portfolio, as well as policies having limits of $250 million or greater, policies with home/foreign exposure and the property sections of most of Lexington's homeowners book. The reinsurance provides coverage under the same policy terms and conditions as issued by Lexington. In the event of a covered loss, Berkshire stands behind Lexington.

"With $4.8 billion in policyholder surplus and "A" or higher financial strength ratings from the relevant rating agencies, Lexington is the largest U.S. based surplus lines insurer. This enhances Lexington's value to its policyholders", said George Stratts, Executive Vice President of Lexington and head of its Property Division.

"This support from AAA rated, Berkshire Hathaway speaks volumes about Lexington's true financial strength and affirms its pivotal role and leadership position in the marketplace," said Kevin H. Kelley, Chairman and Chief Executive Officer of Lexington Insurance Company.

For more information, please contact George Stratts at 617-330-8433 or (george.stratts@aig.com) or Ed Mazman at 617-443-4660 (Edward.mazman@aig.com).

All products are written by insurance company subsidiaries of AIG Commercial Insurance Group, Inc. Coverage may not be available in all jurisdictions and is subject to actual policy language. As a surplus lines insurer, Lexington Insurance Company does not generally participate in state guaranty funds. Non-insurance products and services may be provided by independent third parties.

American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.

Source: American International Group, Inc.