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AIG Obtains $400 Million of One-Year and Three-Year Indemnity Reinsurance Coverage for Diversified Commercial and Consumer Property Portfolios

Fully Collateralized through Catastrophe Bond Issuance by Tradewynd Re Ltd.

NEW YORK--(BUSINESS WIRE)--Dec. 19, 2013-- American International Group (AIG) today announced that it has entered into multiple reinsurance placements with Tradewynd Re Ltd., which will provide $400 million of indemnity reinsurance protection against U.S., Caribbean and Gulf of Mexico named storms, and U.S. and Canadian earthquakes.

Similar to Tradewynd Re Ltd.'s July 2013 catastrophe bond issuance, this arrangement includes a diversified portfolio of commercial and consumer risks. To fund its potential obligations to AIG, Tradewynd Re Ltd. issued three tranches of notes, one with a one-year term and two with three-year terms. Due to strong investor demand and favorable pricing, AIG increased the offering to $400 million from the initial $100 million.

The transaction closed December 18, 2013 and provides AIG with fully collateralized coverage against losses from the events described above on a per-occurrence basis (under three reinsurance agreements related to the notes).

AIG is a leader in the insurance-linked securities market, sponsoring over $500 million of indemnity cat bonds in 2013 and $2.375 billion in total since 2010.

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig |Twitter: @AIG_LatestNews | LinkedIn: http://www.linkedin.com/company/aig |

AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all jurisdictions, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.

Source: American International Group, Inc.

AIG
Matt Gallagher, 212-458-3247
matthew.gallagher2@aig.com